Align Technology enters $200 million revolving credit facility

By Sarah Lizee

Olympia, Wash., Feb. 27 – Align Technology, Inc. entered into a credit agreement with Wells Fargo Bank, NA on Tuesday providing for a $200 million secured revolving credit facility with a $50 million letter of credit, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures Feb. 27, 2021.

Borrowings bear interest at Libor plus a margin that ranges from 125 basis points to 175 bps based on the company’s consolidated leverage ratio.

The commitment fee ranges from 15 bps to 25 bps, also based on leverage.

The initial interest rate is Libor plus 125 bps, and the initial commitment fee is 15 bps.

The company is required to comply with a maximum consolidated leverage ratio of 3 times and a minimum consolidated interest coverage ratio of 3 times.

Proceeds will be used for working capital and general corporate purposes.

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

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