Accellent gets LBO debt financing commitment, plans to refinance loan, notes

By Sara Rosenberg

New York, Oct. 11 - Kohlberg Kravis Roberts & Co. (KKR) received a debt financing commitment from JPMorgan to help fund its acquisition of Accellent Inc., as well as to refinance Accellent's existing senior secured credit facility and 10% senior subordinated notes due 2012, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The debt commitment, which will also provide working capital to the company, includes a bridge facility, the filing said.

No further details on the debt financing were outlined in the filing and a spokesman for KKR told Prospect News the private equity firm is "not commenting on the capital structure at this point."

KKR is acquiring Accellent from KRG Capital Partners and DLJ Merchant Banking Partners in a transaction valued at $1.27 billion.

The acquisition is expected to be completed before year-end and is subject to customary closing conditions.

Accellent also revealed in its SEC filing that, on Oct. 6, it completed its acquisition of the outstanding membership interests in Machining Technology Group LLC (MTG) for about $50 million, comprised of $33 million in cash, $11 million in convertible preferred stock and $6 million in an earn-out arrangement that will be paid upon the 2006 full-year financial performance of MTG. To fund the cash portion of the acquisition, Accellent drew $21.5 million under its existing revolving credit facility and $12.5 million from the incremental facility under its credit agreement.

Accellent is a Collegeville, Pa., provider of fully integrated contract manufacturing and design services to medical device manufacturers.

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