SAN DIEGO, Calif., March 2 /PRNewswire-FirstCall/ -- Gen-Probe Incorporated (Nasdaq: GPRO) announced today that it is borrowing $170 million under a newly issued line of credit to finance its pending acquisition of Tepnel Life Sciences PLC and other general corporate activities, including its existing share repurchase program.
The Company will pay interest on the one-year, $180 million revolving credit facility, provided by Bank of America, at a floating rate 0.6 percent above the one-month London Interbank Offered Rate (LIBOR), which was approximately 0.5 percent earlier today.
"In today's difficult economic environment, Gen-Probe's strong balance sheet and cash flow enable us to access external liquidity more cost-effectively than if we were to sell assets from our own short-term investment portfolio, which totaled $505 million at year-end and currently yields 2.9% on an after-tax basis," said Herm Rosenman, the Company's senior vice president, finance, and chief financial officer.
Gen-Probe Incorporated is a global leader in the development, manufacture and marketing of rapid, accurate and cost-effective nucleic acid tests (NATs) that are used primarily to diagnose human diseases and screen donated human blood. Gen-Probe has more than 25 years of NAT expertise, and received the 2004 National Medal of Technology, America's highest honor for technological innovation, for developing NAT assays for blood screening. Gen-Probe is headquartered in San Diego and employs approximately 1,000 people. For more information, go to www.gen-probe.com.
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|SOURCE Gen-Probe Incorporated|
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