Integra LifeSciences Holdings, a global medical technology company, increased its credit facility with its bank group led by Bank of America as administrative agent.

The expanded credit facility includes the following terms:

• An increase in the facility from $1.5 billion to $2.2 billion, consisting of an expanded term loan of $1.2 billion with no change to the existing revolving line of credit of $1 billion.
• The new $700 million incremental term loan will be made available in a single drawing on a delayed basis, at the closing of the Codman Neurosurgery acquisition.
• An increase in the company’s maximum consolidated total leverage ratio to 5.5 times EBITDA, as calculated per the credit agreement, for an incremental 25 basis point rate as well as a 5 basis point incremental commitment fee.

Integra LifeSciences plans to use $700 million of the incremental term loan, together with borrowings from the existing revolving facility, to finance the acquisition of Codman Neurosurgery from Johnson & Johnson, which was previously announced on February 15, 2017.

“We are pleased to announce that we have secured the financing for our planned acquisition of Codman Neurosurgery under favorable credit terms,” said Glenn Coleman, chief financial officer, Integra LifeSciences. “We continue to expect the acquisition to close in Q4/17, and with this new agreement in place, retain the strength and flexibility of our balance sheet.”