Bergen Brunswig Announces Five-Year $450 Million Financing Agreement

10-Jan-2001

Bergen Brunswig Corporation (NYSE:BBC), a leading supplier of pharmaceuticals and specialty healthcare products, today announced an agreement with GE Capital, one of the world's largest financial service providers, to provide a five-year, $450 million accounts receivables securitization program funded by a GE Capital-sponsored commercial paper conduit. The commercial paper is rated A1+P1 by Standard & Poor's and Moody's Investor services. The five-year facility, which replaces an existing 364-day term, $358 million program, provides less expensive long-term access to capital and will allow Bergen to use the additional funding capacity to replace other, more costly outstanding debt. "We are excited to be entering into an expanded relationship with an acknowledged global leader in the financial services industry and one with significant experience in the distribution business," said Neil F. Dimick, chief financial officer for Bergen Brunswig Corporation. "Although GE Capital was a participant in our previous securitization program, we believe this expanded affiliation will add diversification and enhanced flexibility to Bergen's overall financing structure. In addition, this financing provides Bergen with access to funding at a lower cost than that available through its bank credit facility." Dimick noted that the five-year commitment with GE Capital offers a valuable source of liquidity over an extended term and will allow Bergen to support important investments and working capital. "We are pleased and excited to expand our affiliation with Bergen Brunswig," said William J. Brasser, managing director of GE Capital's Commercial Finance business. "We believe Bergen will leverage this commitment to more fully advantage its customer base while advancing its own position as an industry leader and innovator."

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