| NEW YORK, April 29
NEW YORK, April 29 Ortho-Clinical Diagnostics
(OCD) outlined price guidance and terms on its $2.525 billion
senior secured credit facility that funds, in part, the Johnson
& Johnson Inc unit's acquisition by the Carlyle Group
, sources said.
The loan package, as reported, is split between a $350
million, five-year revolving credit facility and a $2.175
billion, seven-year term loan.
Price guidance on the covenant-lite term loan is set at
LIB+350 with a 1 percent Libor floor. The loan is offered to
investors at an original issue discount of 99-99.5. It has 101
soft call protection for six months.
The term loan will amortize at 1 percent annually.
Lead left Barclays is arranging the credit facility, with
Goldman Sachs, Credit Suisse, UBS and Nomura joining on the
right. The loan launched Monday at a bank meeting. Commitments
are due May 7.
J&J is selling the clinical diagnostics business to Carlyle
for $4.15 billion. In addition to the leveraged loan portion,
the financing package is expected to include $1.15 billion in
senior unsecured notes.
Senior leverage on the deal is 3.2 times and total leverage
is 5.1 times, sources said.
Moody's Investors Service on April 25 assigned first-time
ratings to Ortho-Clinical Diagnostics SA. Moody's assigned a B2
corporate family rating and a B1 facility rating to the new
credit facilities. Additionally, the rating agency assigned a
Caa1 rating to the proposed $1.15 billion senior unsecured notes
OCD SA, a Luxembourg entity, is the parent company of
Ortho-Clinical Diagnostics Inc, a U.S. entity. OCD SA and OCD
Inc are the co-borrowers of both the senior secured credit
facilities and the unsecured notes, Moody's said in a ratings
note. The outlook is stable.
Raritan, NJ-based 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
The company generated approximately $1.9 billion of revenues
for the year ending December 29, 2013, according to Moody's. The
transaction is expected to close mid-2014.
(Editing By Michelle Sierra and Jon Methven)