FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Goldman Sachs Agents $125MM Senior Secured Revolver for LivaNova

August 16, 2021, 07:14 AM
Filed Under: Medical

LivaNova PLC announced the early retirement of its $450 million five-year senior secured term loan (the Term Loan). To retire the Term Loan, LivaNova repaid the $450 million principal amount outstanding, plus accrued interest and an approximately $35.6 million make-whole premium (including $28.8 million, which is the present value of interest through June 17, 2022 and a $6.8 million termination fee). The repayment was funded by proceeds from an underwritten offering of ordinary shares that closed on August 6, 2021 (including the full exercise of the underwriters’ option) and cash on hand. Early retirement of the Term Loan, which bore interest on a floating-rate basis, will result in reduced interest expense of approximately $39 million on an annualized basis (based on currently prevailing rates), including approximately $5 million of amortization of debt issuance costs.

In addition, LivaNova announced the execution of a $125 million secured revolving credit facility (the Credit Facility) with Goldman Sachs Bank USA as agent, and Goldman Sachs Bank USA, Barclays Bank PLC and UBS AG, Stamford Branch as lenders. The Credit Facility will be available for general corporate purposes.

After giving effect to retirement of the Term Loan and completion of the equity offering, LivaNova now expects full-year 2021 adjusted diluted earnings per share from continuing operations to be in the range of $1.75 to $2.05 and full-year 2021 adjusted free cash flow to be in the range of $50 to $70 million. These metrics exclude the impact of the $35.6 million make-whole premium described above.

“The successful completion of these transactions represents a significant step toward enhancing our liquidity position, provides improved terms and conditions, and creates financial flexibility,” said Alex Shvartsburg, Chief Financial Officer of LivaNova.

The Credit Facility has a five-year term and bears interest at a rate equal to, for U.S. dollar-denominated loans, an adjusted London Interbank Offered Rate (LIBOR), with a floor of 0.00%, or a base rate determined under the terms of the Credit Facility, plus, in each case, a variable margin based on LivaNova’s senior secured net leverage ratio. As of the effective date of the Credit Facility (August 13, 2021), the applicable margin was equal to 3.00% per annum. Interest will be paid monthly or quarterly, as selected by the borrower, with any outstanding principal due at maturity. The Credit Facility also contemplates the payment of commitment fees on the unused portion of the commitments, at a variable percentage based on LivaNova’s senior secured net leverage ratio. As of the effective date of the Credit Facility, the applicable commitment fee percentage was equal to 0.25% per annum. The Credit Facility, if drawn, can be repaid at any time without premium or penalty. Additional terms and conditions are described in the Company’s 8-K filing that is being filed substantially concurrently with this release.

LivaNova PLC is a global medical technology and innovation company built on nearly five decades of experience and a relentless commitment to provide hope for patients and their families through innovative medical technologies, delivering life-changing improvements for both the Head and Heart. Headquartered in London, LivaNova employs approximately 3,000 employees and has a presence in more than 100 countries for the benefit of patients, healthcare professionals and healthcare systems worldwide.

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.