Haemonetics amends, restates upsized $1 billion credit facility

By William Gullotti

Buffalo, N.Y., May 1 – Haemonetics Corp. entered into a second amended and restated credit agreement with JPMorgan Chase Bank, NA as administrative agent on April 30, according to an 8-K filed with the Securities and Exchange Commission.

The $1 billion credit agreement, which replaced and terminated the company’s previous 2022-signed agreement with JPMorgan, will mature on April 30, 2029.

The facility is comprised of a $250 million senior unsecured term loan and a $750 million revolver.

The upsized revolver is $330 million larger than its most recent predecessor.

Borrowings will bear currency-appropriate interest at SOFR, Euribor, Sonia or Saron plus a margin ranging from 112.5 basis points to 175 bps, based on the company’s consolidated net leverage ratio, subject to a floor of 0%.

As with the prior facility, the revolver has an unused fee of 12.5 bps to 25 bps, likewise based on leverage.

The term loan proceeds were used to retire the balance of the term loans under company’s previous 2022 facility.

The term loan amortizes quarterly through the maturity date at a rate of 2.5% for the first three years, at 5% for the fourth and 7.5% thereafter, with the balance due at maturity.

Financial covenants require the company to maintain a maximum consolidated net leverage ratio of 4x, which can rise on up to two occasions to 4.5x for the four consecutive fiscal quarters ended immediately after the consummation of a qualifying material acquisition, and to maintain a minimum consolidated interest coverage ratio of 3.5x.

In addition to acting as administrative agent, JPMorgan is also a joint lead arranger and joint bookrunner alongside BofA Securities, Inc., Citibank, NA, Citizens Bank, NA, PNC Capital Markets LLC, Truist Securities, Inc., U.S. Bank NA and Wells Fargo Securities, LLC.

Citi, Citizens and U.S. Bank are also acting as co-syndication agents alongside Bank of America, NA, PNC Bank, NA, Truist Bank and Wells Fargo Bank, NA.

HSBC Bank USA, NA and TD Bank, NA are the co-documentation agents.

Proceeds of future borrowings may be used for working capital and general corporate purposes.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.