AngioDynamics plans $200 million credit facility with Navilyst buy

By Sara Rosenberg

New York, Jan. 31 - AngioDynamics has received a commitment for a $200 million credit facility to help fund its acquisition of Navilyst Medical, company officials said in a conference call on Tuesday.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and KeyBanc Capital Markets LLC are the lead banks on the deal.

The facility consists of a $150 million five-year term loan and a $50 million revolver.

Officials said in the call that if it currently borrowed on the facility, interest expense would be somewhere in the 3½% area.

Under the agreement, AngioDynamics is buying Navilyst Medical from Avista Capital Partners for $372 million in cash and stock. AngioDynamics will issue around 9.5 million shares of common stock to Avista Capital Partners.

Other funds for the transaction will come from about $97 million of cash on hand.

Based on an expected closing in the fiscal fourth quarter of 2012, AngioDynamics expects pro forma net sales of about $360 million in fiscal year 2013 and pro forma adjusted EBITDA of about $60 million in fiscal year 2013.

Net debt to EBITDA will be 1.6 times.

Closing is subject to clearance under certain antitrust guidelines and the approval of AngioDynamics' shareholders.

AngioDynamics is a Latham, N.Y.-based provider of medical devices for vascular access, surgery, peripheral vascular disease and oncology. Navilyst Medical is a Marlborough, Mass.-based medical device company.

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