Daily News: March 21, 2017

M&T Agents Integer Loan Repricing

Integer Holdings, a medical device outsource manufacturer, completed an amendment to its senior secured credit facilities to lower the interest rate on its term B loan facility.

According to a related 8-K filing, M&T Bank was administrative agent for the transaction and Credit Suisse Securities served as arranger.

The amendment reduces the applicable interest rate margin of its term B loan facility by 75 basis points, from LIBOR + 4.25% to LIBOR + 3.50%. The LIBOR floor remains at 1.00%. The amendment also includes a prepayment fee of 1.00% in the event of another repricing event (as defined in the senior secured credit facilities) on or before the six-month anniversary of this amendment. There is no change to maturities or covenants as a result of this repricing amendment.

“We are pleased to have successfully amended our term B loan facility to improve the cost of our capital structure,” said Thomas J. Hook, Integer’s president and CEO. “The reduction in interest rate is expected to reduce annual interest expense by approximately $7 million, creating additional operating cash flow and financial flexibility for the company. We appreciate the continued support of our lenders to help us improve the financial position of Integer. We remain focused on growing our business and making improvements to improve cash flow in order to accelerate the pay down of our debt obligations.”