Encore Medical LBO financing to include $325 million credit facility, $215 million in bonds

By Sara Rosenberg

New York, July 3 - Encore Medical Corp. is planning on getting an up to $325 million senior credit facility and issuing $215 million in senior subordinated high-yield bonds to help fund its leveraged buyout by Blackstone Capital Partners V LP, according to an 8-K filed with the Securities and Exchange Commission.

Bank of America and Credit Suisse are the lead banks on the debt financing transactions.

As a back-up for the bonds, the company has received a commitment from the two lead banks for a bridge loan, the filing said.

Other LBO financing will include a commitment from Blackstone to provide up to $335 million in equity.

On Friday, Encore announced that it will be acquired by Blackstone for $6.55 in cash per share, with a total transaction value of about $870 million.

Closing of the transaction is subject to receipt of stockholder and regulatory approvals and the completion of a tender offer and consent solicitation for all of an Encore subsidiary's outstanding 9.75% senior subordinated notes.

Encore is an Austin, Texas, orthopedic device company.

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