Wells Fargo Agents $1B in Credit Facilities for Integer

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September 03, 2021, 07:08 AM

Filed Under: Medical

Integer Holdings, a leading medical device outsource manufacturer, announced that as a result of its financial strength and favorable debt markets, the company has successfully raised $1 billion in Senior Secured Credit Facilities to refinance its existing debt. The new facilities consist of a five-year $400 million Revolving Credit Facility, a five-year $250 million Term Loan A and a seven-year $350 million Term Loan B. The Transaction reduces overall borrowing costs, extends tenor, resets financial covenants to enhance operating flexibility, and increases liquidity through a higher level of revolver capacity.

Wells Fargo Bank is acting as Administrative Agent, Swingline Lender and Issuing Lender. Wells Fargo Securities, BofA Securities, Fifth Third Bank, Keybanc Capital Markets, Citigroup Global Markets and Santander Bank acted as Joint Lead Arrangers and Joint Bookrunners.

New Facilities Highlights:

This debt refinancing is expected to improve Integer’s future annualized diluted earnings per share by approximately $0.15, based on today’s outstanding debt and current interest rates

Nearest debt maturity extended by four years from 2022 to 2026

Improved key credit documentation terms that provide flexibility for ongoing operating and strategic initiatives

Liquidity (cash + revolver availability) increased by approximately $120 million

In conjunction with this transaction, both Moody’s & S&P have upgraded Integer’s corporate family and senior secured ratings to Ba3/BB- (each with stable outlooks)

“Our new credit facilities are consistent with the execution of our disciplined capital structure strategy,” said Jason Garland, Integer’s executive vice president and chief financial officer. “We were able to lower our borrowing cost and create incremental flexibility to invest in Integer’s growth plans. As we invest, our target to maintain net total debt to adjusted EBITDA leverage in the range of 2.5 to 3.5 times remains unchanged. We appreciate the strong support of our lenders in completing these new facilities.”