NEW YORK (GenomeWeb News) – Gen-Probe will borrow $170 million under a newly issued line of credit to pay for its pending acquisition of Tepnel Life Sciences and for other unspecified corporate purposes, the firm said after the close of the market on Monday.
San Diego-based Gen-Probe said that it would pay interest on the one-year, $180 million revolving credit facility at a floating rate of .6 percent above LIBOR, which was at around .5 percent earlier Monday. The credit facility is being provided by Bank of America.
In late January, Gen-Probe inked the deal to acquire Tepnel for £92.8 million ($132.2 million). The acquisition will provide Gen-Probe with an entry into the transplant diagnostics market as well as genetic tests that Gen-Probe believes are complementary to its molecular diagnostics products.
The firms expect to complete the acquisition in April.