Alere Said to Increase Term Loan for Refinancing to $250 Million
Alere Inc. (ALR), a provider of health management services, increased the size of a term loan it’s seeking to refinance debt by $50 million to $250 million, according to a person with knowledge of the transaction.
Alere is proposing to sell the loan at 97.5 cents on the dollar compared with 97.5 cents to 98 cents originally offered, said the person,who declined to be identified because the terms are private. The discount reduces proceeds for the company and boosts the yield to investors.
The financing, due in June 2017, will pay 3.5 percentage points more than the London interbank offered rate, according to data compiled by Bloomberg. Libor, a rate banks charge to lend to each other, will have a 1 percent floor.
GE Capital Markets, the lending unit of General Electric Co., Jefferies Group Inc. and Credit Suisse Group AG are arranging the deal for the Waltham, Massachusetts-based company and lenders must submit commitments by 3 p.m. tomorrow in New York.
David Teitel, chief financial officer of Alere, didn’t respond to an e-mail seeking comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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