Alere Inc.’s $250 million term loan rose in initial trading after the provider of health management services raised the funding to refinance debt.
The loan, due in June 2017, began trading at 98 cents on the dollar, according to data provider Markit Ltd. The financing was sold to investors at 97.5 cents, according to data compiled by Bloomberg.
GE Capital Markets, the lending unit of General Electric Co., Jefferies Group Inc. and Credit Suisse Group AG arranged the deal for Waltham, Massachusetts-based Alere, Bloomberg data show. The loan pays interest at 3.5 percentage points more than the London interbank offered rate, with a 1 percent floor on the benchmark.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.