Boston Scientific gets $2 billion revolver at Libor plus 130 bps

By Susanna Moon

Chicago, April 14 – Boston Scientific Corp. obtained a $2 billion five-year revolving senior credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 130 basis points, based on the company’s credit ratings and leverage. That’s compared with Libor plus 127.5 bps for the company’s 2012 facility, which was refinanced with the new revolver.

The facility fee is 20 bps, down from 22.5 bps for the 2012 facility.

The margin over Libor ranges from 90 bps to 150 bps, the filing noted.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners. Barclays Bank plc, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets and Sumitomo Mitsui Banking Corp. are the joint lead arrangers.

Bank of America, NA is the syndication agent. JPMorgan Chase Bank, NA is the administrative agent. Barclays Bank plc, BNP Paribas, Citibank, NA, Deutsche Bank Securities Inc., Royal Bank of Canada and Sumitomo Mitsui Banking Corp. are the documentation agents.

The agreement matures on April 10, 2020 with one-year extension options.

The covenants require the company to maintain a minimum interest coverage ratio of 3 times and a maximum leverage ratio of 4.5 times for the first four fiscal quarter-ends following the closing of the company’s proposed acquisition of the American Medical Systems urology portfolio and then dropping to 4.25 times, 4 times and 3.75 times for the next three fiscal quarter-ends, respectively, and then to 3.5 times for each fiscal quarter-end after that.

Boston Scientific is a medical device maker based in Natick, Mass.

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