Hill-Rom enters $500 million revolver, $200 million term facilities

By Jennifer Chiou

New York, Aug. 24 - Hill-Rom Holdings, Inc. entered into a credit agreement with JPMorgan Chase Bank, NA as administrative agent, providing for an up to $500 million revolving credit facility and $200 million of term loans, according to an 8-K filing with the Securities and Exchange Commission.

The company may request to increase the revolving loan commitment and the amount of the term loans by up to an additional $250 million, the filing said.

RBS Citizens, NA and Bank of America, NA acted as co-syndication agents, and Fifth Third Bank, PNC Bank, NA and U.S. Bank NA acted as co-documentation agents.

All loans mature on Aug. 24, 2017.

The filing stated that the term loans will amortize so that 37.5% of the principal will be repaid over the five-year term, with the balance due at maturity.

The credit facility replaces the company's $500 million credit agreement dated as of March 28, 2008 that was scheduled to terminate in March 2013.

Borrowings will bear interest based on the company's credit rating. The initial spread (ratings: Ba2/BB) will be Libor plus 165 basis points for revolving loans and 200 bps for term loans. There is a 35 bps facility fee rate.

Hill-Rom must maintain a ratio of consolidated debt to consolidated EBITDA of not more than 3.5:1.0 and a ratio of consolidated EBITDA to interest expense of not less than 3.5:1.0.

Proceeds will be used for general corporate purposes, including financing permitted acquisitions.

The borrower is a Batesville, Ind., medical technologies business.

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