St. Jude Medical eyes new loan, notes to fund Thoratec acquisition

By Lisa Kerner

Charlotte, N.C., July 22 – St. Jude Medical, Inc. plans to use additional term loan debt and senior notes to fund its proposed $3.4 billion acquisition of Thoratec Corp.

Bank of America Merrill Lynch has provided fully committed financing and is advising St. Jude, according to a news release.

The transaction is not conditioned on financing, and St. Jude Medical said it is committed to maintaining a strong investment-grade rating.

Under the terms of the merger agreement, Thoratec shareholders will receive $63.50 in cash for each share of Thoratec common stock they own.

The transaction is conditioned upon Thoratec shareholder and regulatory approvals, among other things.

Also under the agreement, Thoratec has a 30-day go-shop period to actively solicit alternative proposals. Thoratec is subject to fees if the merger agreement is terminated.

St. Jude Medical is a medical device manufacturer based in St. Paul, Minn.

Thoratec develops therapies to address advanced-stage heart failure. The company is based in Pleasanton, Calif.

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