$600 Million Credit Facility Allocated for Dexter Corp.

Strategic Insights -

First Chicago NBD, Fleet Bank, and BankAmerica, in their roles as administrative agent, syndication agent, and documentation agent, respectively, have allocated a significant $600 million credit facility for Dexter Corp. This allocation is a vital component of Dexter's plan to acquire its remaining equity interest in Life Technologies Inc. for approximately $420 million. The facility will be utilized to support this acquisition, marking a crucial step in Dexter's growth strategy.

Key Takeaways:

  • First Chicago has allocated $70 million, while Fleet Bank and Bank of America (BofA) have each allocated $60 million.
  • The remaining allocation is as follows: ABN AMRO, BankBoston, Bank of Tokyo, Banca Commerciale Italiana, Commerzbank, Den Danske Bank, First Union, Mellon Bank, and SunTrust Bank have each allocated $30 million, while Banque Nationale de Paris, Bank Austria, Bank of New York, Royal Bank of Scotland, and Wachovia Bank have each allocated $25 million, and BBH & Co. has allocated $15 million.
  • The $600 million facility is divided between a 364-day $300 million revolving credit and a five-year $300 million revolving credit.
  • The all-in drawn pricing for the first six months is set at Libor plus 52.5 basis points with a utilization fee of five basis points if more than 25% of the facility is drawn and 10 basis points if more than 50% is drawn, which is expected at closing.
  • Unfunded pricing is set at 10 basis points on the 364-day revolver and eight basis points on the five-year revolver.
  • The proceeds from the facility will be used to support Dexter's acquisition of its remaining equity interest in Life Technologies Inc.
  • The acquisition is worth approximately $420 million.

Statistics:

  • $600 million: the total credit facility allocated for Dexter Corp.
  • $300 million: the amount allocated for the 364-day revolving credit
  • $300 million: the amount allocated for the five-year revolving credit
  • 364 days: the term for the first revolver credit
  • 5 years: the term for the second revolver credit
  • 52.5 basis points: the Libor plus all-in drawn pricing for the first six months
  • 10 basis points: the utilization fee for the 364-day revolver if more than 25% is drawn
  • 10 basis points: the utilization fee for the five-year revolver if more than 50% is drawn
  • $420 million: the approximate worth of the acquisition
  • 25%: the utilization threshold for the 5 basis point utilization fee
  • 50%: the utilization threshold for the 10 basis point utilization fee

Sources:

  • "Administrative agent First Chicago NBD, syndication agent Fleet Bank and documentation agent BankAmerica have allocated a $600 million credit facility for Dexter Corp., sources said."