Align Technology closed a $200 million secured revolving credit facility with a $50 million letter of credit. According to a related 8-K filing, Wells Fargo served as administrative agent on the transaction.

The commitments under the credit agreement expire on February 27, 2021. The company’s obligations under the credit agreement are guaranteed by certain of its subsidiaries meeting materiality thresholds set forth in the credit agreement.

The proceeds of the loans may be used for working capital and general corporate purposes. The company has the right to prepay loans under the credit agreement in whole or in part at any time without penalty. Amounts prepaid may be reborrowed. As of the closing date of the credit agreement, no loans or letters of credit were outstanding under the credit agreement.

Loans under the credit agreement bear interest, at the company’s option, at either a rate based on the reserve adjusted LIBOR for the applicable interest period or a base rate, in each case plus a margin. The base rate is the highest of Wells Fargo’s publicly announced prime rate, the federal funds rate plus 0.50% and one month LIBOR + 1.0%. The margin ranges from 1.25% to 1.75% for LIBOR loans and 0.25% to 0.75% for base rate loans. Interest on the loans is payable quarterly in arrears with respect to base rate loans and at the end of an interest period (and at three month intervals if the interest period exceeds three months) in the case of LIBOR loans. Principal, together with accrued and unpaid interest, is due on the maturity date.