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Greatbatch enters $1.9 billion commitment letter for Lake Region deal
By Wendy Van Sickle
Columbus, Ohio, Aug. 31 – Greatbatch, Inc. entered into a commitment letter on Thursday for $1.9 billion of financing in connection with the company’s planned acquisition of Lake Region Medical Holdings, Inc., according to an 8-K filed with the Securities and Exchange Commission.
The commitment letter is with Manufacturers and Traders Trust Co., Credit Suisse Securities (USA) LLC, Credit Suisse AG, KeyBank NA and KeyBanc Capital Markets Inc.
It provides for a $300 million senior secured term loan A facility; a $1 billion senior secured term loan B facility; a $200 million senior secured revolving facility with a $15 million sublimit for standby letters of credit and a $15 million sublimit for swingline loans; and an up to $400 million senior unsecured bridge facility.
It is expected the company will seek long-term financing in lieu of a portion or all of the bridge facility.
Under the planned acquisition, Greatbatch would pay $478 million in cash, issue a total of 5.1 million shares of common stock and options to Lake Region Medical’s equity holders and assume Lake Regions’ debt of about $1 billion.
Greatbatch is a Frisco, Texas-based medical device company. It manufactures critical medical device technologies for the cardiac, neuromodulation, vascular and orthopaedic markets and batteries for high-end niche applications in the portable medical, energy, military and environmental markets.
Lake Region Medical, based in Wilmington, Mass., provides outsourced manufacturing and engineering services to the medical device industry. The company was formerly known as Accellent Inc.
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