Orthofix Medical borrowing $100 million under revolving facility

By Sarah Lizee

Olympia, Wash., April 13 – Orthofix Medical Inc. initiated a borrowing of $100 million under its existing secured revolving credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent under the credit agreement.

The company said it initiated the borrowing to preserve financial flexibility in view of the ongoing business disruptions caused by the Covid-19 global pandemic.

Orthofix initially intends to preserve the amount drawn as available cash on hand, in order to fund future operations and strategic initiatives in the event of a prolonged slowdown of elective surgical procedures and/or other prolonged financial effects from Covid-19.

The facility matures October 2024.

Interest is Libor plus 125 basis points. The margin can vary based on the company’s net leverage ratio.

Orthofix is a Curacao-based medical device company.

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