Fleet Financial Group has closed syndication on a $225 million loan for the biotechnology company Genzyme Corp.
The Boston banking company, together with documentation agent Bank of Boston Corp., syndicated the facility among 19 banks.
Genzyme, Cambridge, Mass., said it would use the loan to refinance debt used for its $250 million purchase of Deknatel Snowden Pencer Inc., and for general corporate purposes.
Fleet had arranged a $200 million bridge loan for Genzyme's July acquisition of the surgical products company, based in Fall River, Mass.
Both commercial and investment banks have been offering bridge loans as a way to win lead roles on longer-term financing.
"By working with Fleet, we were able to arrange a new credit facility that will allow Genzyme to finance our strategic investments on more favorable terms," said Henri Termeer, Genzyme chairman and chief executive officer.
A number of commercial banks have formed partnerships with each other and with investment banks to create bridge loan funds.