Gen-Probe borrows $170M under new credit line

California, USA-based Gen-Probe says that it is borrowing $170.0 million  under a newly-issued line of credit to finance its pending  $132.0-million acquisition of Tepnel Life Sciences (Marketletter  February 2) and other general corporate activities, including its  existing share repurchase program.

The company will pay interest on the one-year, $180.0-million revolving  credit facilit, provided by Bank of America, at a floating rate 0.6%  above the one-month London Interbank Offered Rate, which was around 0.5%  on the day of the announcement.

"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 $505.0 million at year-end and  currently yields 2.9% on an after-tax basis," said Herm Rosenman, senior  vice president, finance, and chief financial officer.