Accellent plans $1.13 billion of debt for Lake Region Medical purchase and debt refinancing

By Sara Rosenberg

New York, Feb. 3 - Accellent Inc. has received a commitment for $1.13 billion of debt financing to fund its acquisition of Lake Region Medical, to refinance an existing credit facility and to repay all of its senior and senior subordinated notes, according to an 8-K filed with the Securities and Exchange Commission on Monday.

UBS, Goldman Sachs Bank USA and KKR Capital Markets LLC are the lead banks on the financing.

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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