Omnicell enters $300 million commitment letter for Aesynt purchase

By Wendy Van Sickle

Columbus, Ohio, Oct. 29 – Omnicell, Inc. entered into a commitment letter on for $300 million in senior secured credit facilities to help fund its planned acquisition of Aesynt Inc., according to an 8-K filed with the Securities and Exchange Commission.

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

The commitment letter provides for a $200 million senior secured term loan A facility and a $100 million revolving credit facility with a $10 million sublimit for swingline loans and a $10 million sublimit for letters of credit.

Omnicell will be able to add up to $100 million in future term loans or revolver capacity after closing.

Borrowings will bear interest at Libor plus a margin of 150 basis points to 225 bps, depending on total net leverage ratio, with initial interest at Libor plus 175 bps.

The revolver has an initial a commitment fee of 25 bps. The fee can range from 20 bps to 35 bps.

The revolver and term loan will mature on the fifth anniversary of the closing date. The term loan has amortization of 5% in years one and two; 10% in years three and four; and 15% in year five.

The company will be required to maintain a maximum total leverage ratio of 3 times and a minimum fixed charge ratio of 1.5 to 1.

Omnicell announced on Thursday its definitive agreement to purchase Aesynt for about $275 million including assumed debt. The company said it will use available cash in addition to borrowings under the new facility in the transaction, which is expected to close in 2016.

Omnicell is a Mountain View, Calif.-based company that provides automated services for medication and supply management in health care in the United States and internationally. Cranberry, Pa.-based Aesynt provides pharmacy automation and information management tools for healthcare organizations.

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