Orthofix $125 million credit facility to launch Thursday

By Sara Rosenberg

New York, Dec. 2 - Orthofix is scheduled to hold a bank meeting 1:30 p.m. ET Thursday in New York for a proposed $125 million credit facility (BB-), according to a market source. Wachovia Securities is the sole lead bank on the deal.

The facility consists of a $15 million five-year revolver and a $110 million five-year term loan. Pricing on the two tranches is not currently being disclosed, the source said.

Proceeds from the term loan will be used to help fund the previously announced acquisition of BREG Inc. for the purchase price of $150 million. The company will also use cash on hand and $27.8 million of Orthofix common stock to fund the transaction.

Orthofix is a Netherlands-based orthopedic company. BREG is a Vista, Calif., seller of orthopedic postoperative reconstruction and rehabilitative products.

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