Cooper closes $1.43 billion five-year term loan at Libor plus 150 bps

By Marisa Wong

Morgantown, W.Va., Nov. 1 – Cooper Cos., Inc. entered into a $1,425,000,000 five-year senior unsecured term loan agreement on Nov. 1, according to an 8-K filing with the Securities and Exchange Commission.

DNB Markets, Inc., KeyBanc Capital Markets Inc., Bank of America Merrill Lynch, JPMorgan Chase Bank, NA, MUFG Union Bank, NA, PNC Capital Markets LLC, U.S. Bank NA, Wells Fargo Securities, LLC, Bank of the West, Citigroup Global Markets Inc. and TD Bank, NA are joint lead arrangers and joint bookrunners. DNB Bank ASA, New York Branch is administrative agent; Bank of America, NA, JPMorgan Chase Bank and KeyBank NA are syndication agents; Bank of the West, MUFG Union Bank, PNC Bank, NA, TD Bank, U.S. Bank and Wells Fargo Bank, NA are co-documentation agents; and Citibank, NA, Citizens Bank, NA and Mizuho Bank, Ltd. are senior managing agents.

The company used part of the facility to help fund its acquisition of the Paragard Intrauterine Device (IUD) business of Teva Pharmaceutical Industries Ltd. and intends to use the remainder of the funds it has drawn under the facility for working capital and general corporate purposes.

Amounts outstanding will bear interest initially at Libor plus an applicable rate of 150 basis points. The applicable rate generally ranges from 100 bps to 175 bps, based on the company’s total leverage ratio.

The term loan balance is payable at maturity on Nov. 1, 2022. The new term loan is not subject to amortization and is not subject to mandatory prepayments prior to maturity.

The loan agreement contains financial covenants requiring the company to maintain a maximum total leverage ratio of 3.75 to 1.00 (or 4.25 to 1.00 in some cases) and a minimum interest coverage ratio of 3.00 to 1.00.

Cooper is a medical device company based in Pleasanton, Calif.

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