Cantel Medical refinanced the company’s credit facility to include a $200 million tranche A term loan and a $400 million revolver.
According to the related 8-K filing, Bank of America, Wells Fargo and JPMorgan Chase, among others, acted as lenders on the transaction.
Subject to certain conditions, the company may increase its borrowing capacity under the revolver or tranche A term loan by an aggregate amount not to exceed $300 million.
Borrowings will bear interest at rates ranging from 0.00% to 1.00% above prime rate for base rate borrowings, or at rates ranging from 1.00% to 2.00% above LIBOR for LIBOR-based borrowings, depending on Cantel’s consolidated leverage ratio. The amendment also provided fees on the unused portion of the revolving credit facility at rates ranging from 0.20% to 0.35%, depending on the consolidated leverage ratio.
The credit agreement was secured by substantially all assets of Cantel and its U.S.-based subsidiaries, a pledge by Cantel of all of the outstanding shares of its U.S.-based subsidiaries and 65% of its foreign-based subsidiary shares and a guaranty by its domestic subsidiaries.
Cantel Medical provides infection prevention products and services in the healthcare market, specializing in endoscopy, water purification and filtration and healthcare disposables.
