Quidel Secures $120 Million Credit Facility

In the midst of this credit crisis, having access to capital at favorable rates will make or break many of the smaller device firms we cover.

It’s reassuring to see companies with strong balance sheets and defensible revenues raising funds. Such was the case with Quidel. The company, a provider of point-of-care (POC) diagnostics, entered into a $120 million, five-year senior secured revolving credit facility with four banks last week.

The new credit facility replaces previously unused $30 million credit agreement with Bank of America (BAC). In addition to BAC, U.S. Bank, JPMorgan and Union Bank of California were members of the lender group. Quidel has the option (under certain conditions) to borrow an additional $75 million.

Given the downturn, the credit facility could allow the company to acquire struggling diagnostics firms at favorable prices. John Radak, Quidel’s CFO, commented,

“We initiated the process to create this expanded credit facility a few months ago in recognition of Quidel’s growth opportunities and the best options to fund these opportunities. Now, in spite of an incredibly challenging credit market, we have successfully established this credit facility with attractive pricing.”

In 2007, the company had revenues of $118 million and net revenues of $13.6 million. Below, an interview with John Tamerius, Quidel’s VP of Clinical and Regulatory Affairs, captured at last month’s finance forum.

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