Accellent to get $75 million asset-based revolver led by Wells Fargo

By Sara Rosenberg

New York, Jan. 19 - Accellent Inc. plans to get a new $75 million five-year senior secured asset-based revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Wells Fargo Capital Finance is the administrative agent on the deal.

If excess availability is less than 15% of the lesser of the commitment amount and the borrowing base for five consecutive business days, the company must comply with a minimum fixed-harge coverage ratio test of 1.1 to 1.0.

The revolver is expected to be undrawn at closing.

In addition, the company announced on Tuesday that it will be selling $400 million of senior secured notes due in 2017.

Proceeds from the notes will be used to repay the company's existing senior secured credit facility debt.

The consummation of the notes is conditioned upon entering into the asset-based revolver and the repayment of the existing credit facility.

Accellent is a Wilmington, Mass.-based provider of outsourced manufacturing and engineering services to the medical device industry in the cardiology, endoscopy, drug delivery, neurology and orthopaedic markets.

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