Regions, TD Bank to Support RTI Biologics Acquisition
RTI Biologics, a provider of orthopedic and other biologic implants, announced its intent to acquire privately held Pioneer Surgical Technology, a medical technology company that manufactures and distributes metal and synthetic products in the orthopedics, biologics, spine, trauma and cardiothoracic markets.
Under the terms of the merger agreement, RTI will pay $130 million in cash to acquire all the outstanding stock of Pioneer. The transaction will be funded through a combination of cash on hand, a new credit facility and a concurrent private placement of convertible preferred equity from Water Street Healthcare Partners.
RTI has received a commitment from TD Bank, TD Securities USA and Regions Bank for a five-year, $80 million senior secured facility, which includes a $60 million term loan and a $20 million revolving credit facility.
Additionally, RTI has agreed to a $50 million private placement of convertible preferred equity with Water Street, a healthcare-focused private equity firm with extensive operating experience and industry knowledge.
To read RTI’s full news release click here.