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American Medical Systems gets $250 million five-year revolver
By Angela McDaniels
Tacoma, Wash., April 18 - American Medical Systems, Inc. entered into a $250 million five-year senior secured revolving credit facility on Friday, according to an 8-K filing made with the Securities and Exchange Commission by parent company American Medical Systems Holdings, Inc.
The initial pricing is Libor plus 175 basis points with a commitment fee of 25 bps. The spread over Libor ranges from 150 bps to 250 bps, and the commitment fee is 25 bps to 37.5 bps, both based on leverage.
JPMorgan Chase Bank, NA is the administrative agent, PNC Bank, NA is the syndication agent, and U.S. Bank NA is the documentation agent. J.P. Morgan Securities LLC and PNC Capital Markets LLC are the joint bookrunners and joint lead arrangers.
There is a $125 million accordion feature. The revolver has a $25 million sublimit for letters of credit and a $25 million sublimit for swing-line loans.
The revolver can be accelerated upon a change of control, which will occur if the company is acquired by Endo Pharmaceuticals Holdings Inc. as planned.
Under the credit agreement covenants, the company's debt-to-EBITDA ratio must be no greater than 3.5 to 1, and its fixed charge coverage must be at least 1.5 to 1.
American Medical Systems Holdings, AMS Research Corp., AMS Sales Corp. and Laserscope have provided guarantees for the revolver.
The proceeds will be used to finance working capital needs and for general corporate purposes.
The revolver was undrawn as of Monday.
The company terminated its July 2006 credit facility with CIT Healthcare LLC as administrative agent. There were no outstanding borrowings.
American Medical Systems is a Minnetonka, Minn., supplier of medical devices and procedures focused on pelvic disorders.
Endo is a Chadds Ford, Pa.-based specialty health-care services company focused on high-value branded products and specialty generics.
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