DJO Finance launches $300 million term loan, amend and extend

By Sara Rosenberg

New York, March 5 - DJO Finance LLC held a call on Monday to launch a $300 million incremental term loan due September 2017 and an amendment and extension of its existing term loan debt, according to a market source.

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Macquarie Capital, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

The incremental loan is being talked at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 981/2, the source said.

Under the amend and extend, the company is asking to push out the maturity on a portion of its roughly $843 million term loan to November 2016 from May 2014.

Pricing on the extended loan will be Libor plus 500 bps, versus non-extended pricing of Libor plus 300 bps, the source added.

Proceeds from the incremental loan will be used to repay some outstanding term loan debt.

As part of the credit facility amendment, the company is asking for permission to raise the new loan.

DJO is also looking to get a new $100 million five-year revolver to replace its existing revolver.

And the company will try to raise $230 million of senior secured second-priority debt to repurchase its $210 million 10 7/8% senior notes due 2014.

DJO Finance is a Vista, Calif.-based developer, manufacturer and distributor of medical devices for musculoskeletal health, vascular health and pain management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.