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Accellent to launch $1.13 billion credit facility on Feb. 11
By Sara Rosenberg
New York, Feb. 3 - Accellent Inc. will hold a bank meeting at 10:30 a.m. ET on Feb. 11 to launch a $1.13 billion credit facility, according to a market source.
The facility consists of a $75 million five-year revolver, a $795 million seven-year first-lien term loan and a $260 million eight-year second-lien term loan, the source said.
Both term loans have a 1% Libor floor, and the first-lien term loan has amortization of 1% per annum, the source continued.
UBS Securities LLC, Goldman Sachs Bank USA and KKR Capital Markets LLC are the bookrunners on the financing, with UBS the left lead on the first-lien debt and Goldman the left lead on the second-lien debt.
Proceeds will be used to fund the acquisition of Lake Region Medical, to refinance an existing credit facility and to repay all of Accellent's senior and senior subordinated notes, according to an 8-K filed with the Securities and Exchange Commission on Monday.
Under the agreement, Lake Region, an original development manufacturer of minimally invasive devices and delivery systems to the cardiology and endovascular markets, is being bought for $315 million, plus rollover stockholders will contribute $75 million of their stock for shares of the merged company.
The merged business will be called Lake Region Medical, and the company will continue to use the Accellent brand in marketing the advanced surgical business.
Closing is expected this quarter, subject to regulatory approvals and other customary conditions.
Accellent is a Wilmington, Mass.-based provider of fully integrated outsourced manufacturing and engineering services to the medical device industry.
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