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."
GE Capital, with assets of over US $345 billion, is a global, diversified financial services company with 28 specialized businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and a variety of consumer services, such as car leasing, home mortgages and credit cards to businesses and individuals around the world. GE is a diversified manufacturing, technology and servicing company with operations worldwide.
Bergen Brunswig Corporation, headquartered in Orange County, California, is a leading supplier of pharmaceuticals and specialty healthcare products as well as information management solutions and consulting services. Bergen's customers include the nation's healthcare providers (hospitals, nursing homes and physicians) drug stores, manufacturers and patients. Through its subsidiaries, Bergen provides product distribution; logistics; pharmacy management programs; and Internet fulfillment strategies designed to reduce costs and improve patient outcomes across the entire healthcare spectrum. Bergen Brunswig press releases are available on the company's website at www.bergenbrunswig.com.
Except for historical information, all other information set forth in this press release, such as earnings forecasts and earnings rate projections and speculation regarding the financial impact of additional capital resources, consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those projected or implied. Such statements may be identified by the use of forward-looking language such as "may," "will," "should," "expect," "anticipate," "estimate," "believe," "think, "continue" or the negatives or other variations thereof or other similar terminology. Such risks and uncertainties include the risks described in exhibit 99(a) to the Company's Annual Report on Form 10-K for the year ended September 30, 1999 and in other reports and exhibits filed with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, the costs and difficulties related to the integration of acquired businesses, the loss or disruption of one or more key customer or supplier relationships, changes in the distribution outsourcing pattern for pharmaceutical products and/or services, the ability to obtain general financing or financing rates that would be compatible with the Company's business operations, and the costs and other effects of governmental regulation and legal and administrative proceedings. The Company assumes no obligation to update the information in the release.