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|Quidel Corporation Secures New $120 Million Credit Facility|
SAN DIEGO--(BUSINESS WIRE)-- Quidel Corporation (NASDAQ:QDEL), a leading provider of rapid point-of-care (POC) diagnostic tests, today announced that it entered into a new $120 million, five-year senior secured revolving credit facility with a group of four banks. Banc of America Securities, LLC was the sole arranger of the credit facility. In addition to Bank of America, U.S. Bank, JPMorgan and Union Bank of California are members of the lender group. Quidel has the option under certain conditions to increase the borrowing capacity under the new facility by an additional $75 million. Borrowings under the credit facility may be used by Quidel for acquisitions as well as for general corporate purposes.
"We initiated the process to create this expanded credit facility a few months ago in recognition of Quidel's growth opportunities and the best options to fund these opportunities. Now, in spite of an incredibly challenging credit market, we have successfully established this credit facility with attractive pricing. We believe this achievement was only possible given Quidel's solid financial footing and track record. We are pleased to have created the flexibility to further leverage our business and execute on our strategic vision," said John M. Radak, Quidel's chief financial officer.
The new credit facility replaces and expands upon Quidel's previous unused $30 million credit agreement with Bank of America. Under the terms of the new agreement, Quidel has the option to price loans issued under the facility based either on a spread over LIBOR or Bank of America's prime rate, at Quidel's discretion. Under the LIBOR option, loans will bear interest equal to the LIBOR Rate plus a spread of 150-275 basis points depending upon Quidel's then leverage ratio. Under the prime rate option, loans will bear interest at Bank of America's prime rate plus a spread of 50-175 basis points, again determined by Quidel's then leverage ratio.
About Quidel Corporation
Quidel Corporation serves to enhance the health and well being of people around the globe through the discovery, development, manufacturing and marketing of rapid diagnostic solutions at the point of care (POC) in infectious diseases and reproductive health. Marketed under the leading brand name of QuickVue(R), Quidel's portfolio of products currently includes tests that aid in the diagnosis of several disease or condition states, including influenza, respiratory syncytial virus, Fecal Occult Blood, Strep A, pregnancy, bacterial vaginosis, H. pylori and Chlamydia. Quidel's products are sold to healthcare professionals with a focus on the physician office lab and acute care markets through leading medical distribution partners on a worldwide basis. Quidel's Specialty Products Group (SPG) develops research products in the fields of oncology and bone health with potential future point-of-care applications. By building value in rapid diagnostic tests, Quidel provides leadership to the industry and among healthcare professionals allowing for the movement of patient testing out of the central laboratory setting and into the physician office, urgent care and other outpatient settings where rapid testing and treatment have an impact on clinical outcomes and provide an economic benefit. For more information, visit www.quidel.com, www.colorectal-test.com or www.flutest.com.
This press release contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties. Many possible events or factors could affect our future financial results and performance, such that our actual results and performance may differ materially. As such, no forward-looking statement can be guaranteed. Differences in actual results and performance may arise as a result of a number of factors including, without limitation, seasonality, the timing of onset, length and severity of cold and flu seasons, success in executing on our strategic initiatives, uncertainty surrounding the detection of novel influenza viruses involving human specimens, adverse changes in the competitive and economic conditions in domestic and international markets, actions of our major distributors and the level of success in our recent distributor incentive programs, technological changes and uncertainty with research and technology development, including any future molecular-based technology, the reimbursement system currently in place and future changes to that system, manufacturing and production delays or difficulties, adverse actions or delays in product reviews by the U.S. Food and Drug Administration (the "FDA"), intellectual property, product liability, environmental or other litigation, required patent license fee payments not currently reflected in our costs, potential inadequacy of booked reserves and possible impairment of goodwill, and lower-than-anticipated sales or market penetration of our new products. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "might," "expect," "anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently. The risks described under "Risk Factors" in reports and registration statements that we file with the SEC from time to time should be carefully considered. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date of this press release. We undertake no obligation to publicly release the results of any revision or update of the forward-looking statements.
Source: Quidel Corporation