Fisher Scientific $800 million credit facility to launch this month

By Sara Rosenberg

New York, June 2 - Fisher Scientific International Inc.'s proposed $800 million credit facility (Ba1) is expected to launch sometime this month, according to a market source. Bank of America, Deutsche Bank and Credit Suisse First Boston are the lead banks on the deal.

The facility consists of a $400 million revolving credit facility with an interest rate of Libor plus 175 basis points, a $150 million term loan A with an interest rate of Libor plus 175 basis points and a $250 million term loan B with an interest rate of Libor plus 150 basis points, the source said.

Proceeds from the credit facility will be used to help fund the previously announced merger between Fisher and Apogent Technologies Inc. Under the terms of the merger agreement, Apogent shareholders will receive 0.56 tax-free shares of Fisher Scientific's common stock for each share of Apogent common stock they own. Upon completion of the transaction, Fisher's shareholders will own about 57% of the combined company and Apogent's shareholders will own about 43%. The companies expect the transaction to be completed early in the third quarter.

The combined scientific research and laboratory products company will be called Fisher Scientific International Inc. and will be based in Hampton, N.H.

The merger requires the approval of the shareholders of both Fisher Scientific and Apogent Technologies, as well as customary regulatory approvals. Fisher and Apogent intend to hold meetings of stockholders on June 28. The waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act expired on May 21.

On May 28, the two companies began exchange offers that relate to $645 million of Apogent's existing debt securities as part of the planned merger. The offers involve the exchange of $345 million of Apogent's floating-rate convertible senior debentures due 2033 for new floating-rate convertible senior debentures and $300 million of Apogent's 2.25% convertible senior debentures due 2021 for new 2.25% convertible senior debentures.

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