AngioDynamics repays credit facility, gets new $125 million revolver

By Angela McDaniels

Tacoma, Wash., June 6 – AngioDynamics, Inc. repaid all amounts outstanding under its existing credit agreement and entered into a new credit agreement that provides for a $125 million five-year secured revolving credit facility on Monday, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the bookrunner, lead arranger and administrative agent. Bank of America, NA and KeyBank NA are the co-syndication agents.

The revolver has an uncommitted expansion feature that allows AngioDynamics to increase the total revolving commitments and/or add new tranches of term loans in an aggregate amount not to exceed $75 million.

The initial interest rate is Libor plus 125 basis points. The margin ranges from 125 bps to 175 bps depending on AngioDynamics’ total leverage ratio. After default, the interest rate may be increased by 200 bps.

The initial commitment fee is 20 bps. It ranges from 20 bps to 25 bps per year on the unused portion.

The proceeds may be used to refinance existing debt of AngioDynamics and its subsidiaries, to finance working capital needs and for general corporate purposes, including permitted acquisitions.

The revolver is guaranteed by AngioDynamics’ material direct and indirect wholly owned domestic subsidiaries.

The credit agreement has financial covenants that require AngioDynamics to maintain a fixed charge coverage ratio of not less than 1.25 to 1.00 and a total leverage ratio of not greater than 3 to1, which, during some periods following material acquisitions, will be increased to 3.5 to 1.0.

On May 31, the company completed the sale of its fluid management business and all of the assets used primarily in connection with the business to Medline Industries, Inc. and received about $169.2 million.

The company used a portion of the proceeds to pay down the existing credit facility. Its post-transaction cash balance is about $80 million.

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

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