Align Technology enters into credit agreement, including revolver

By Taylor Fox

Chicago, July 22 – Align Technology, Inc. has entered into a credit agreement providing for $300 million unsecured revolving credit facility with a $50 million letter-of-credit sub-facility, according to an 8-K filing with the Securities and Exchange Commission.

The proceeds of the loans under this credit agreement may be used for working capital and general corporate purposes. Align has the right to repay loans under the credit agreement either in full or in part at any time without penalty.

Interest is either at a rate based on the reserve adjusted Libor for the applicable interest period or Base rate, plus a margin. The Base rate is the highest of Citibank, NA’s Prime rate, the Federal Funds rate plus 50 basis points and one-month Libor plus 100 bps. The margin ranges from 150 bps to 225 bps for Libor loans and 50 bps to 125 bps for Base rate loans.

The credit agreement is set to expire July 21, 2023.

Citibank, NA is administrative agent.

Align Technology is a San Jose, Calif.-based manufacturer of digital scanners and clear aligners used in orthodontics.

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