Greatbatch ups term A to $375 million, flexes spread higher on term B

By Sara Rosenberg

New York, Oct. 9 – Greatbatch Ltd. upsized its six-year term loan A to $375 million from $300 million and lifted pricing on its $1,025,000,000 seven-year term loan B to Libor plus 425 basis points from Libor plus 375 bps, according to a market source.

Pricing on the term loan A was unchanged at Libor plus 325 bps, subject to a leverage-based grid, with an original issue discount of 99.75.

The term loan B still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Amortization on the term loan B is 1% per annum, and amortization on the term loan A is 5% in years one and two, 7.5% in year three and 10% in years four, five and six.

The company’s now $1.6 billion credit facility, up from $1,525,000,000, also includes a $200 million five-year revolver.

Recommitments are due at 3 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, M&T Bank and Keybanc Capital Markets are the leads on the deal, with Credit Suisse left lead on the term loan B and M&T left lead on the revolver and term loan A.

Proceeds will be used to help fund the acquisition of Lake Region Medical, a Wilmington, Mass., provider of outsourced manufacturing and engineering services to the medical device industry.

Other funds for the transaction will come from $360 million of notes, downsized from $435 million with the term loan A upsizing, the source added.

Greatbatch is a Frisco, Texas-based medical device company.

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