TRLPC: J&J's Ortho-Clinical readies $2.525B loan for Carlyle buy

NEW YORK, April 24 Thu Apr 24, 2014 1:03pm EDT

NEW YORK, April 24 (Reuters) - Ortho-Clinical Diagnostics Inc, a unit of Johnson & Johnson Inc, is planning to launch April 28 a $2.525 billion senior secured credit facility to finance, in part, its acquisition by Carlyle Group, sources told Thomson Reuters LPC.

The loan package is split between a $350 million, five-year revolving credit facility and a $2.175 billion, seven-year term loan.

The credit facility is being arranged by lead left Barclays with Goldman Sachs, Credit Suisse, UBS and Nomura joining on the right.

Johnson & Johnson is selling the clinical diagnostics business to Carlyle for $4.15 billion.

A bank meeting is set for 2:30 p.m. ET. Carlyle Group did not immediately return calls for comment.

In addition to the leveraged loan portion, the financing package, as reported by Thomson Reuters LPC in January, is expected to include $1.15 billion in senior notes, according to sources.

OCD serves clinical laboratories and the transfusion medicine community. The company provides tools for early screening, diagnosing, monitoring and confirming diseases, focused on supporting hospitals, laboratories and blood centers globally.

The transaction is expected to close in the middle of 2014. (Editing By Michelle Sierra and Jon Methven)

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