Orthofix sets Sept. 7 launch for $375 million credit facility

By Sara Rosenberg

New York, Aug. 30 - Orthofix International NV has scheduled a bank meeting for Sept. 7 to launch its proposed $375 million credit facility (BB-), according to a market source.

Wachovia and Citigroup are the lead banks on the deal.

The facility consists of a $45 million six-year revolver and a $330 million seven-year term loan B, the source said.

In a conference call held earlier this month, company officials said that they expect the term loan to carry an interest rate somewhere in the range of Libor plus 200 to 250 basis points.

Proceeds from the credit facility will be used to help fund the company's $333 million cash acquisition of Blackstone Medical, Inc.

Looking down the road, the company hopes to use some lower cost equity financing sometime within the next 12 months, which could include a convertible financing or, depending on market reaction, equity in the secondary.

The transaction is anticipated to be completed as early as September, subject to the receipt of regulatory approvals, consummation of financing and other customary conditions to closing.

Orthofix is a Curacao, the Netherlands-based diversified orthopedic products company. Blackstone Medical is a Springfield, Mass.-based international spine product company.

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