AngioDynamics gets $200 million five-year loan, revolver; pricing cut

By Susanna Moon

Chicago, Sept. 24 - AngioDynamics, Inc. said it refinanced its debt with a $100 million five-year term loan and a $100 million five-year revolving line of credit, reducing interest by up to 75 basis points.

AngioDynamics entered into a loan agreement on Sept. 19 with J.P. Morgan Securities LLC, BofA Merrill Lynch and Keybank NA as the joint bookrunners and joint lead arrangers, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent, and Bank of America, NA and Keybank NA are the co-syndication agents.

The agreement includes up to a $20 million sublimit for letters of credit and a $5 million sublimit for swingline loans.

Proceeds from the revolver may be used for general corporate purposes.

The term loan has a quarterly repayment schedule equal to 5%, 5%, 10%, 15% and 65% of its principal amount in years one through five.

Interest on the loans will initially be Libor plus 175 basis points, with a spread of 150 bps to 225 bps, based on leverage. The unused fee on the revolver ranges from 20 bps to 35 bps.

The company borrowed $100 million under the term facility on Sept. 19 and about $41.4 million under the revolver to repay the company's existing credit agreement.

The financial covenant requires AngioDynamics to maintain a ratio of consolidated total debt to consolidated EBITDA of no more than 3.75 to 1.

The facility will improve AngioDynamics' capital structure and provide greater flexibility to support the execution of its growth strategy, according to a company press release.

"We are always exploring ways to reduce costs in this economic environment, and we saw an opportunity to take advantage of favorable debt market conditions," Mark Frost, the company's executive vice president and chief financial officer, said in the press release.

"This refinance will reduce our interest expense by over $1 million per year and improve our future cash flow. We appreciate the support of our corporate lenders in this transaction."

AngioDynamics is a Latham, N.Y.-based provider of medical devices for vascular access, surgery, peripheral vascular disease and oncology.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.