Beckman Coulter Closes Oversubscribed $400 Million Syndicated Revolving Credit Facility.Business Editors Beckman Coulter This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Inc. (NYSE NYSE See: New York Stock Exchange :BEC) yesterday closed a new $400 million, three-year revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The facility was arranged through a syndicate of 11 financial institutions. The transaction was 31% oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. with total commitments of $525 million. Citigroup served as administrative agent and co-lead arranger. Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Securities served as syndication agent and co-lead arranger. Bank One N.A., Fleet National Bank and Mellon Bank N.A. served as co-documentation agents. The new facility replaces a facility currently at $317 million, which was entered into in 1997 and was set to expire in October of 2002. The facility will be used for general corporate purposes. The facility carries an option to request increases up to $600 million, and an extension option. The facility has a maximum leverage covenant of 3.25 times, and a minimum interest expense coverage covenant of 3.5 times. The facility carries no credit rating-based default covenant. "This facility is a key component of our overall financing strategy," said John P. Wareham, chairman, president and chief executive officer for Beckman Coulter. "We appreciate the ongoing support of our banks and other financial partners. Our strong cash flow and improved credit ratings enabled us to significantly increase our flexibility under the new facility compared with our prior facility. This new facility, along with our cash flow and other financings, will provide needed resources and flexibility to operate our business and pursue strategic opportunities over the next few years." Beckman Coulter, Inc. is a global biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. company, headquartered in Fullerton, California Fullerton is a city located in northern Orange County, California, United States. As of the 2000 census, the city had a total population of 126,003. It was founded in 1887 by George and Edward Amerige and named for George H. . The company develops and markets instruments, chemistries, software and supplies that simplify and automate laboratory processes throughout the biomedical testing continuum. Through pioneering medical research and drug discovery, specialty testing, and patient care diagnostics, Beckman Coulter supports all phases of the battle against disease. Annual sales for the company totaled $2 billion in 2001, with 62% of this amount generated by recurring revenue from supplies, test kits and services. For more information, visit www.beckmancoulter.com. |
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