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SELECTED TRANSACTION DETAILS
Medical Action Industries in New $65MM ABL With Wells Fargo
Tuesday, May 21, 2013

Lenders/Participants Wells Fargo Bank [Lender]
Structure Revolver
Amount $65.000 Million
Borrower(s) Medical Action Industries
Description The new credit facility refinances and replaces the previous agreement which had been scheduled to expire in June 2014 and which had approximately $54.6 million outstanding as of May 17, 2013. The new agreement includes a revolving line of credit, a term loan A and, upon election, a term loan B as well as the ability to increase the size of the loan in certain circumstances, such as acquisitions. Under the new credit agreement, applicable interest rates are determined based upon average excess availability and, at the Company's election, either a prime rate or LIBOR-based rate. Under this asset-based loan, the advance rates applied to collateral represent key levers in determining the total amount of borrowing capacity for the Company. These advance rates have been increased under the new credit agreement allowing for greater borrowing capacity on the Company's collateral. If at certain times throughout the term of this new agreement, the excess availability in the revolving line of credit based on the collateral falls below certain thresholds, certain financial and non-financial covenants would become applicable. As of May 20, 2013, the Company had excess availability of approximately $10.0 million.
Industry Manufacturing
Related Tags Wells Fargo




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