Haemonetics adds $150 million of term loans via accordion

By Taylor Fox

New York, March 1 – Haemonetics Corp. entered into a term loan amendment to its existing credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides for a $150 million senior unsecured incremental term loan A-2 issued pursuant to the accordion feature under the existing credit agreement, which permits the company to borrow additional loans in an amount not to exceed $250 million.

The loan will initially bear interest at an annual rate of Libor plus 200 basis points, which may change based on the company’s leverage ratio. The spread above Libor may range from 125 bps to 200 bps.

The loan matures on June 15, 2023, the same maturity date for the initial term loan under the existing credit agreement.

The principal amount of the loan is repayable quarterly through the maturity date and amortizes at a rate of 5% per annum through June 2022 and 80% per annum during the final year.

The parties have also agreed to modify certain restrictions on restricted payments to facilitate the company’s entry into a convertible note financing and increase the maximum leverage ratio the company is required to maintain for the four consecutive fiscal quarters immediately following the consummation of the acquisition of Cardiva Medical, Inc. to 4.25x, which acquisition constitutes a qualifying material acquisition as defined in the existing credit agreement.

Following the expiration of such four consecutive fiscal quarter period, the maximum leverage ratio the company is required to maintain will revert to 3.5x.

Also on Monday, the company borrowed $290 million under the credit agreement’s revolver, leaving $60 million of availability. Proceeds of the additional term loans and the revolver draw are to be used in the Cardiva acquisition, along with cash on hand.

JPMorgan Chase Bank, NA is the administrative agent.

JPMorgan, Citibank, NA and U.S. Bank NA were the joint lead arrangers and bookrunners for the term A-2 facility.

Haemonetics is a Braintree, Mass.-based health care company that provides blood management services.

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