DJO Finance extends $390 million of term loan borrowings to 2016

By Sara Rosenberg

New York, March 15 - DJO Finance LLC extended roughly $389.6 million of its term loan to November 2016 from May 2014, leaving about $103.5 million of non-extended term loan debt following planned pay downs, according to a market source.

Pricing on the extended loan is Libor plus 500 basis points, versus non-extended pricing of Libor plus 300 bps.

With the amendment and extension, the company is getting a $350 million incremental term loan (Ba2/BB-) due September 2017 that is priced at Libor plus 500 bps with a 1.25% Libor floor and an original issue discount of 981/2.

The incremental term loan had been upsized from $300 million during syndication.

Proceeds from the incremental loan are being used to repay some outstanding term loan debt, which, prior to the extension and the paydown, totaled around $843 million.

DJO is also getting a new $100 million five-year revolver (Ba2/BB-) to replace its existing revolver.

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.

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

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