Argon Medical trims pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 27 – Argon Medical Devices Holdings Inc. lowered pricing on its $310 million seven-year first-lien term loan (B2/B+) to Libor plus 375 basis points from Libor plus 425 bps and on its $110 million eight-year second-lien term loan (Caa2/B-) to Libor plus 800 bps from Libor plus 825 bps, according to a market source.

Furthermore, the original issue discount on the second-lien term loan was tightened to 99.5 from 99, the source said.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $435 million of credit facilities also provide for a $15 million revolver (B2/B+).

UBS Investment Bank is the bookrunner on the deal.

Recommitments were scheduled to be due at noon ET on Friday, the source added.

Proceeds will be used to help fund the acquisition of the company by Shandong Weigao.

Argon Medical is a Plano, Texas-based medtech business primarily focused on physician-preferred products, which include biopsy & vascular devices, drainage catheters, guidewires and related accessories.

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