DJO Finance lifts incremental term loan amount to $350 million

By Sara Rosenberg

New York, March 13 - DJO Finance LLC increased its incremental term loan (Ba2/BB-) due September 2017 to $350 million from $300 million, according to a market source.

Pricing on the loan was left unchanged at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 981/2.

With the new debt, the company is seeking an amendment to allow for the new loan and an extension of a portion of its existing $843 million term loan to November 2016 from May 2014.

Pricing on the extended loan is Libor plus 500 bps, versus non-extended pricing of Libor plus 300 bps.

The amendment has been approved, and preliminary results show that slightly more than 65% of the term loan has been extended, the source added.

Proceeds from the incremental loan will be used to repay some outstanding term loan debt, and with the upsizing, more term loan borrowings will get taken out, split between $25 million of extended and $25 million of non-extended.

DJO is also looking to get a new $100 million five-year revolver (Ba2/BB-) to replace its existing revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

DJO Finance is a Vista, Calif.-based developer, manufacturer and distributor of medical devices for musculoskeletal health, vascular health and pain management.

© 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.