Orthofix International, a provider of minimally invasive surgical and non-surgical medical devices for the spine, orthopedic sectors, has set up a new $300m five-year credit facility, including a $200m senior secured revolving line of credit and a $100m senior secured term loan.
The new credit facility includes a $50m expansion feature and currently includes an interest rate of Libor plus 3% on both the revolving line of credit and the term loan compared to 6.75% rate, which the company had been paying on its prior facility.
Orthofix plans to use the proceeds from the new facility to pay off the company’s prior facility as well as for capital expenditures and other general corporate purposes.
Orthofix executive vice president and chief financial officer Bob Vaters said that they are pleased with the confidence expressed by the financial institutions participating in new larger facility, which will provide Orthofix with a lower interest rate and more flexible covenants as well as additional borrowing capacity and available credit compared with previous credit facility.