Summary
Abbott Laboratories (ABT) announced on December 13, 2016, the execution of a 120-Day Bridge Term Loan Agreement, securing up to $2.0 billion in unsecured financing. This facility is specifically earmarked to fund the St. Jude Acquisition, repay existing indebtedness of both Abbott and the acquired business, and cover associated transaction fees and expenses. The bridge loan is contingent upon the successful completion of the St. Jude Acquisition and will be drawn as a single borrowing. The agreement includes customary provisions for unsecured financings, such as representations, warranties, covenants, and events of default. Interest rates will be determined by the Company's choice of a base rate or Eurodollar rate, plus an applicable margin tied to credit ratings, along with standard fees.
Key Highlights
- 1Abbott Laboratories secured a $2.0 billion unsecured 120-Day Bridge Term Loan Agreement.
- 2The primary purpose of the loan is to finance the St. Jude Acquisition.
- 3The funds will also be used to repay existing indebtedness of Abbott and the acquired entity.
- 4Transaction fees and expenses related to the St. Jude Acquisition are also covered by the loan.
- 5The availability of the loan is conditional on the consummation of the St. Jude Acquisition.
- 6Borrowings will bear interest based on either a base rate or Eurodollar rate, plus an applicable margin.
- 7Customary covenants, representations, warranties, and events of default are included in the agreement.