Alere amends secured credit agreement to permit subsidiary sales

By Toni Weeks

San Luis Obispo, Calif., Dec. 3 – Alere Inc. entered into a sixth amendment to its secured credit agreement on Dec. 1 with General Electric Capital Corp. as collateral agent and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amended agreement

• Permits the company to close its proposed sale of subsidiary Alere Health, LLC and Alere Health’s subsidiaries to Optum;

• Provides permissions for Alere’s recent sale of indirect subsidiary BioNote, Inc. for a purchase price payable in South Korean won equal to about $45 million;

• Eliminates some previous conditions to the company’s ability to refinance, redeem or otherwise satisfy before maturity the company’s existing 3% convertible senior subordinated notes due 2016 in the aggregate outstanding principal amount of $150 million; and

• Requires the company to use the net cash proceeds of the Alere Health and BioNote sales to repay outstanding term loans under its credit agreement, provided that Alere may use the first $170 million of the net cash proceeds of the sale of Alere Health to repay outstanding revolving credit loans rather than outstanding term loans. Amounts repaid under the revolving credit loans may be reborrowed, the filing noted.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management.

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