Express Scripts $800 million credit facility to launch Wednesday

By Sara Rosenberg

New York, Jan. 15 - Express Scripts Inc. is scheduled to hold a bank meeting on Wednesday for a proposed $800 million credit facility, according to a syndicate document. Credit Suisse First Boston and Citigroup are the joint lead arrangers on the deal.

The facility consists of a $400 million five-year revolver, a $200 million five-year term loan A and a $200 million six-year term loan B, according to the document. Interest rates on the tranches are still to be determined.

Proceeds will be used by the St. Louis-based independent pharmacy benefits manager to help fund the acquisition of the capital stock of Orlando, Fla.-based CuraScript Pharmacy Inc. and CuraScript PBM Services Inc. for $335 million, and to refinance debt. The acquisition is expected to close during the first quarter of 2004.

Previously it was thought that the deal totaled $500 million consisting of a $300 million revolver, priced at Libor plus 175 basis points, and a $200 million term loan B. It was also thought that a bank meeting could occur as early as the week of Jan. 5.

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