Merit gets $175 million revolving commitments, $100 million term loan

By Marisa Wong

Madison, Wis., Dec. 27 - Merit Medical Systems, Inc. entered into an amended and restated credit agreement on Dec. 19, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the administrative agent, and Wells Fargo Securities, LLC is the lead arranger and bookrunner.

Under the credit agreement, lenders have agreed to make up to $175 million of revolving credit loans as well as a $100 million term loan, repayable quarterly until the Dec. 19, 2017 maturity date.

According to the filing, Wells Fargo has agreed to make swingline loans from time to time through Dec. 19, 2017 in amounts equal to the difference between the amounts actually loaned and the aggregate credit commitment.

The term loan and any revolving credit loans bear interest initially at Libor plus 125 basis points. The applicable margin ranges from 125 bps to 225 bps, based on the company's consolidated total leverage ratio.

Initially swingline loans bear interest at the Libor market index rate plus 200 bps.

There is a commitment fee that ranges from 20 bps to 40 bps, also depending on the consolidated leverage ratio.

The credit agreement contains financial covenants requiring Merit Medical to not

• Permit the consolidated total leverage ratio to be greater than 3.5 to 1 as of any fiscal quarter ending during 2013, no more than 3.35 to 1 as of any fiscal quarter ending during 2014, no more than 3 to 1 as of any fiscal quarter ending during 2015, no more than 2.75 to 1 as of any fiscal quarter ending during 2016 and no more than 2.5 to 1 as of any fiscal quarter ending after that;

• For any period of four consecutive fiscal quarters, permit the ratio of consolidated EBITDA to consolidated fixed charges to be less than 1.75 to 1;

• Permit consolidated net income for certain periods to be less than $0; or

• Permit the aggregate amount of all facility capital expenditures in any fiscal year beginning in 2013 to exceed $30 million.

As of Dec. 19, Merit Medical had borrowed $245,332,641, the filing noted.

The credit agreement was completed in connection with Merit's acquisition of Thomas Medical Products, Inc.

Based in South Jordan, Utah, Merit develops, manufactures and distributes proprietary disposable medical devices used in interventional and diagnostic procedures, particularly in cardiology, radiology and endoscopy.

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