Medical device company Cantel Medical amended its $600 million credit agreement with Bank of America as administrative agent, swing line lender and L/C issuer. The new facility included a $200 million tranche A term loan and a $400 million revolving credit facility.
According to a related 8-K filing, Wells Fargo Bank and JPMorgan Chase acted as co-syndication agents on the transaction, while MUFG Bank acted as documentation agent. Merrill Lynch, Wells Fargo Securities and JPMorgan Chase served as joint lead arrangers and joint bookrunners
Subject to certain conditions, Cantel may, from time to time, increase its borrowing capacity under the revolver or term to up to $300 million.
Borrowings under the agreement 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 the company’s consolidated leverage ratio. The facilities were secured by substantially all assets of Cantel and its U.S.-based subsidiaries.
Cantel amended the agreement in conjunction with its acquisition of Stericycle’s Controlled Environmental Solutions (CES) business for $17 million on a cash-free and debt-free basis.
The CES business, consisting of B&V Testing and Certco services, provides testing and certification, environmental monitoring and decontamination services for clean rooms and other controlled environments to ensure safety, regulatory compliance and quality control. Cantel anticipates the acquisition to be accretive to non-GAAP earnings per share in the fiscal year ending July 31, 2019 and beyond.
“This acquisition allows us to better serve customers in the clean room products and services market,” said Curt Weitnauer, president of Cantel’s Water Purification and Filtration Division. “By joining forces, we will enhance the value we provide to existing and future customers by coupling the CES business’ strong reputation for technical and service excellence with our expertise to deliver high-quality, and innovative infection prevention solutions.”