Orthofix amends credit facility, loosening leverage ratio, increasing interest rate

By Angela McDaniels

Tacoma, Wash., Sept. 29 - Orthofix International NV and Orthofix Holdings Inc. said they amended their credit facility on Sept. 22 to relax the leverage ratio and to clarify the definitions of consolidated EBITDA and excess cash flow.

The interest rate for the facility was increased to Libor plus 450 basis points from Libor plus 175 bps, reflecting current debt market conditions.

According to an 8-K filing with the Securities and Exchange Commission, the amendment also:

• Increases the dollar amount of asset sales that can be made without lender consent;

• Increases the amount of specified investments that can be made, debt that can be incurred and liens that can be agreed to without lender consent; and

• Adds provisions that allow Orthofix Holdings to obtain certain credit in specified foreign currencies.

The company is still able to repay the facility at any time without any additional cost, according to a company news release.

The amount outstanding under the facility totaled $292.4 million as of June 30.

Orthofix is a medical device company based in Curacao, Netherlands Antilles.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.