CryoLife launches $225 million term loan B at Libor plus 425-450 bps

By Sara Rosenberg

New York, Nov. 1 – CryoLife Inc. launched on Wednesday its $225 million covenant-light first-lien term loan B due November 2024 with price talk of Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $255 million of credit facilities also include a $30 million revolver.

Deutsche Bank Securities Inc., Capital One Bank and Fifth Third Bank are the bookrunners on the deal.

Commitments are due at noon ET on Nov. 14, the source added.

Proceeds will be used to help fund the acquisition of Jotec AG, a German-based developer of technologically differentiated endovascular stent grafts, and cardiac and vascular surgical grafts, and to refinance an existing $69 million term loan.

Under the agreement, CryoLife will acquire Jotec for an upfront payment of $225 million, subject to certain adjustments, consisting of 75% in cash and 25% in CryoLife common stock issued to Jotec’s shareholders.

Other funds for the transaction will come from cash on hand.

Closing is expected this year, subject to customary conditions.

CryoLife is a Kennesaw, Ga.-based medical device and tissue processing company focused on cardiac and vascular surgery.

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