Bank of China contributes to $825 million USD syndicated revolving credit facility to Advance Paradigm for the acquisition of PCS Holding Corporation and debt refinancing purposes in 2000

Project narrative

On October 2, 2000, financial close was reached on a deal in which a syndicate of 11 banks — including the New York Branch of the Bank of China (BOC) — entered into an $825 million USD syndicated loan agreement with Advance Paradigm, Inc. — a Delaware-based healthcare and pharmacy management company — for general corporate purposes, including funding its acquisition of PCS Holding Corporation. The loan carried a maturity of seven years, and the interest rate was LIBOR plus an applicable margin based on the the debt leverage ratio. The proceeds were used by the borrower to pay for the acquisition of PCS Holding Corporation, a healthcare-management company that operated within the pharmacy benefit management (PBM) segment, from Rite Aid Corporation, refinance certain existing debts, and cover transaction fees and expenses. Additionally, funds were made available to support working capital and general corporate requirements. The acquisition was completed on October 2, 2000. In addition to BOC, the following lenders also participated: Merrill Lynch Capital Corporation, Bank One, N.A., Credit Suisse First Boston, General Electric Capital Corporation, First Union National Bank, Raymond James Bank, FSB, CIBC Inc., The Bank of Nova Scotia, Erste Bank der Oesterreichischen Sparkassen AG, and Bank of America. The loan was guaranteed by the following subsidiary guarantors: PCS Holding Corporation, PCS Health Systems, Inc., Clinical Pharmaceuticals, Inc., PCS Mail Services, Inc., PCS Services, Inc., PCS Mail Services of Birmingham, Inc., PCS Mail Services of Ft. Worth, Inc., PCS Mail Services of Scottsdale, Inc., ADV Operations, L.P., ADVP Management, L.P., Advance Rx.com, L.P., ADVP Consolidation, L.L.C., Foundation Health Pharmaceuticals, Inc., Baumel Eisner Neuromedical Research, Inc., First Florida International Holding, Inc., FFI Rx Managed Care, Inc., First Florida Managed Care, Inc., Innovative Medical Research, Inc., Mature Rx Plus of Nevada, Inc., Ambulatory Care Review Services, Inc., Phoenix Communications International, Inc., Innovative Pharmaceuticals Strategies, Inc., and HMN Health Services, Inc. On June 22, 2001, certain borrowers increased their commitment to the loan. No Chinese bank was involved.