Cantel Medical refinances via $600 million five-year loan, revolver at Libor plus 125 bps

By Susanna Moon

Chicago, July 2 – Cantel Medical Corp. said it refinanced its credit facility by amending the agreement to include a $200 million of tranche A term loan and an upsized $400 million revolving credit facility due June 28, 2023.

The company entered into a $600 million amended credit agreement on Monday with Bank of America Merrill Lynch, Wells Fargo Securities, LLC and JPMorgan Chase Bank, NA as joint lead arrangers and bookrunners, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer; Wells Fargo Bank, NA and JPMorgan Chase Bank are the co-syndication agents; and MUFG Bank, Ltd. is the documentation agent.

Interest on the loans is initially Libor plus 125 basis points, with a spread of Libor plus 100 bps to 200 bps, based on leverage. The commitment fee ranges from 20 bps to 35 bps.

Some proceeds of the term loan were used to repay $164 million of the company’s revolving credit loans under its existing credit agreement.

Future borrowings under the amended revolver will be used to support Cantel's strategic growth initiatives, for capital expenditures and for general corporate purposes.

The amended credit agreement also includes a $300 million accordion.

At closing, Cantel had $200 million of term loan borrowings outstanding under the amended credit facility and available capacity under the revolver of $400 million.

In addition to the tranche A term loan, the amended terms include an upsizing of the revolving credit commitments from $250 million.

Pricing under the amended loans was reduced as was the annual commitment fee.

“We are pleased that we were able to expand the capacity, lengthen the maturity and establish more favorable terms under our credit facility,” Peter Clifford, executive vice president and chief financial officer, said in the company press release.

“This new facility provides us with greater financial flexibility and ample access to capital necessary to support the ongoing acquisition strategy and other growth initiatives of Cantel for the coming years.”

Cantel Medical makes infection prevention and control products and services for the health care field. The company is based in Little Falls, N.J.

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