A Medical Device Daily
Dade Behring Holdings (DBH; Deerfield, Illinois) reported its intention to enter into a new, multi-year credit agreement with a consortium of banks to provide a $600 million revolving credit facility for the company.
Once the new agreement is completed, the company said it will immediately repay the remaining balance of its existing term loans and later this year implement plans to redeem its 11.91% senior subordinated notes.
"This is an opportune and strategically appropriate time for DBH to refinance its term loans," said Jim Reid-Anderson, chairman, president and CEO. "Because our business has been so successful over the past two years, we have generated a significant amount of cash flow that has allowed us to repay debt ahead of schedule and invest for our future. We believe that this is the next important step for us. The new facility will reduce our borrowing costs, greatly increase the company's financial flexibility, and provide adequate liquidity to repay our senior subordinated notes."
The terms and conditions of the new loan agreement will be made public once the transaction is finalized.
Banc of America Securities and Citigroup Global Markets will serve as joint lead arrangers and joint book managers on the transaction.
DBH is one of the world's largest companies dedicated solely to developing clinical diagnostics.
RoundTable Healthcare Partners (Lake Forest, Illinois), an operating-oriented private equity firm focused on the healthcare industry, reported the closing of its second fund totaling $500 million in equity capital.
RoundTable's second fund was initially targeted at $400 million. One month after fundraising efforts commenced, the firm closed its second fund at the maximum amount it said it would accept in commitments.
RoundTable closed its first fund of $400 million in March 2002. The second fund's limited partners are comprised of substantially all of RoundTable's first fund investors as well as several new institutions. RoundTable's institutional investors include financial institutions, university endowments, fund managers, pension funds and foundations.
"We are pleased our original strategy has produced strong deal flow and investment returns," said Lester Knight, managing partner of RoundTable and one of its founding partners. "Closing our second fund allows us to continue executing our strategy of investing in healthcare companies that can benefit from our strong operating focus and industry relationships."
RoundTable says it focuses its investments on established, profitable companies in targeted healthcare segments that can benefit from the firm's expertise, relationships and operating oversight. Targeted healthcare segments include medical products (devices and disposables), medication delivery systems, specialty pharmaceuticals, specialty distribution and complementary outsourced services.
To date, RoundTable's first fund has completed six platform company investments and multiple add-on acquisitions.