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Quidelortho obtains $2.75 billion term loan, $750 million revolver
By Rebecca Melvin
Concord, N.H., May 27 – Quidelortho Corp. entered into a credit agreement on Friday for a $2.75 billion senior unsecured term loan facility and a $750 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
The financing is guaranteed by some material domestic subsidiaries of the company and is secured by liens on substantially all of the assets of the company and the guarantors, excluding real property and certain other types of excluded assets.
The financing coincided with closing of a previously announced merger combination of Quidel Corp. and Ortho Clinical Diagnostics Holdings plc.
Proceeds of the term loan, all of which was borrowed at closing, and cash on hand, will be used to pay the cash portion for the company’s acquisition of Ortho shares and repay substantially all of Ortho’s outstanding debt, including Ortho’s previous credit agreement, which was terminated, and Ortho’s 7 3/8% senior notes due 2025 and 7¼% senior notes due 2028.
Both the term loan and revolver mature on May 27, 2027.
Borrowings under the credit agreement will bear interest at term SOFR plus 150 basis points to 225 bps, depending on the borrower’s consolidated leverage ratio.
There is also a 22.5 bps to 30 bps commitment fee, depending on the borrower’s consolidated leverage ratio.
BofA Securities, Inc., Citibank NA, Morgan Stanley MUFG Loan Partners LLC, PNC Capital Markets LLC, Truist Securities Inc., Wells Fargo Securities LLC and DNB Markets Inc. are the joint lead arrangers and bookrunners. Bank of America, NA is the administrative agent, and Capital One NA, Mizuho Bank Ltd., Bank of Nova Scotia, TD Securities (USA) LLC and U.S. Bank NA are the co-documentation agents.
The newly formed provider of rapid diagnostic testing and in vitro diagnostics will be based in San Diego.
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