Surgical Specialties to launch $110 million credit facility on Tuesday

By Sara Rosenberg

New York, July 29 - Surgical Specialties Corp. is set to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $110 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $10 million four-year revolver and a $100 million five-year first-lien term loan, the source said.

Price talk on the term loan is Libor plus 600 basis points with a 1.5% Libor floor and an original issue discount of 98, the source continued.

Included in the term loan is call protection of 102 in year one and 101 in year two on all voluntary prepayments.

Amortization on the term loan is 5% per annum with a step-down to 1% at 2 times net leverage.

Covenants are net leverage with a $10 million cash cap and an interest coverage ratio.

Proceeds will be used to fund a return of capital.

Commitments are due on Aug. 13, the source added.

Surgical Specialties is a provider of disposable surgical products.

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