Merit Medical gets $425 million five-year term loan, revolving loans

By Susanna Moon

Chicago, July 6 – Merit Medical Systems, Inc. obtained an amended five-year credit facility consisting of a $150 million term loan and up to $275 million of revolving loans, of which $25 million may be swingline loans.

Merit amended its credit agreement Wednesday in connection with its acquisition of Dfine, Inc., according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC is the lead arranger and bookrunner. Wells Fargo Bank, NA is the administrative agent, swingline lender and a lender. Bank of America, NA, U.S. Bank, NA and HSBC Bank USA, NA also are lenders.

The credit agreement matures on July 1, 2021.

The covenants requires a consolidated total leverage ratio of no more than 4.5 times through March 31, 2017, gradually stepping down to 3.25 times beginning April 1, 2018.

Also, the ratio of consolidated EBITDA to consolidated fixed charges must be at least 1.25 times and the aggregate amount of all facility capital expenditures in any fiscal year may not exceed $30 million.

As of Wednesday, Merit has borrowed about $342 million under the credit agreement.

South Jordan, Utah-based Merit makes disposable medical devices used in interventional and diagnostic procedures.

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