Bank of America will serve as administrative agent, swing line lender and L/C issuer for an amendment to Cantel Medical’s credit facilities, according to an 8K filed with the SEC.
The principal changes to the credit facilities include:
- An increase of the maximum net leverage to LTM EBITDA ratio covenant to 5.25:1.00 for the company’s fiscal quarter ending April 30, 2020
- The suspension of the maximum net leverage to LTM EBITDA ratio covenant until Oct. 31, 2021
- The suspension of the minimum interest coverage ratio beginning May 1, 2020 until Oct. 31, 2021
- The establishment of new minimum liquidity and minimum LTM EBITDA thresholds until July 31, 2021
- An increase in the interest rate under the credit facilities
- A limit of the company’s ability to pay dividends and repurchase common stock during the period the consolidated leverage ratio and consolidated interest coverage ratio are suspended
_x000D_
_x000D_
_x000D_
_x000D_
_x000D_
_x000D_
As of April 30, 2020, the company had a cash and cash equivalents balance of approximately $110 million and a revolving credit facility outstanding balance of approximately $400 million.
Cantel Medical provides specialized medical device reprocessing systems for endoscopy and renal dialysis as well as advanced water purification equipment, sterilants, disinfectants, cleaners and sterility assurance monitoring products for hospitals and dental clinics. The company also provides disposable infection control products primarily for dental and GI endoscopy markets, instruments and instrument reprocessing workflow systems for the dental industry as well as dialysate concentrates, hollow fiber membrane filtration and separation products.
