Alere revises structure again, moving facility size to $2.05 billion

By Sara Rosenberg

New York, June 27 - Alere Inc. reworked tranching on its senior secured credit facility (Ba2/BB-), resulting in a total deal size of $2.05 billion, up from a recent amount of $2 billion and down from an initial size of $2.1 billion, according to a market source.

The facility now consists of a $250 million revolver, a $625 million term loan A, a $300 million delayed-draw term loan A and an $875 million term loan B, the source said.

By comparison, most recently, the term loan A had been $700 million and the term loan B had been $750 million, and at launch, the term loan A was $450 million, the delayed-draw term loan A was $100 million, the term loan B was $1 billion and there was a $300 million delayed-draw term loan B.

Also, price talk on the term loan A and revolver is now Libor plus 275 basis points, up from Libor plus 250 bps, the source continued. As before, there is no Libor floor.

And, pricing on the term loan B is now Libor plus 350 bps, with a 1% Libor floor and an original issue discount of 991/2, versus prior talk of Libor plus 300 bps to 325 bps with a 1% Libor floor and an original issue discount of 991/2.

The leverage-based pricing grid on the revolver, term loan A and term loan B was left unchanged.

Specifically, when senior secured leverage is greater than 3.0 times, pricing increases by 25 bps, and when senior secured leverage is greater than 4.0 times, pricing increases by an additional 50 bps - so 75 bps in total.

Recommitments were due at 3 p.m. ET on Monday.

Jefferies & Co., GE Capital Markets, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to refinance existing debt, to fund the buyback of common stock and to add cash to the balance sheet.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management to enable individuals to improve their health and quality of life at home.

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