Omnicell obtains amended, restated $500 million five-year revolver

By Sarah Lizee

Olympia, Wash., Nov. 18 – Omnicell, Inc. amended and restated its credit agreement on Friday, providing for a $500 million five-year revolver, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC, Citizens Bank, NA and JPMorgan Chase Bank, NA are the joint lead arrangers and bookrunners. Wells Fargo is the administrative agent, and Citizens Bank and JPMorgan are the co-syndication agents.

The credit agreement also provides for an uncommitted up to $250 million incremental loan facility.

There is a letter of credit sub-limit of up to $15 million and a swingline loan sub-limit of up to $25 million.

The amended and restated credit agreement replaces the existing credit agreement dated as of Jan. 5, 2016 with Wells Fargo as lead arranger and Wells Fargo as administrative agent.

On Friday, the company borrowed $80 million under the revolver to pay off the outstanding term loans under the existing credit agreement.

The company expects to use any future loans under the revolver for working capital, potential acquisitions and other general corporate purposes.

Revolving loans bear interest at Libor plus 125 basis points to 200 bps, depending on the consolidated total net leverage ratio. There is a 15 bps to 30 bps commitment fee, also based on leverage.

The applicable margin and other terms of any term loans under the incremental facility will be determined prior to the incurrence of such loans.

The company is permitted to make voluntary prepayments at any time without payment of a premium or penalty.

There are financial covenants that require the company and its subsidiaries to not exceed a maximum consolidated total net leverage ratio and maintain a minimum interest coverage ratio.

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.

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