dj Orthopedics amends loan to reduce term loan, up revolver, lower spreads

By Sara Rosenberg

New York, May 5 - dj Orthopedics Inc. amended its credit facility, reducing the term loan to $50 million from approximately $94 million, increasing the revolver to $75 million from $30 million and decreasing interest rates by 75 basis points, according to a company news release.

The initial interest rate on the credit facility is Libor plus 150 basis points. Pricing can vary between Libor plus 125 to 200 basis points based on leverage.

There is about $44 million drawn under the revolving credit facility.

Participants in the amended facility include Wachovia Capital Markets LLC as sole bookrunner, sole lead arranger and administrative agent, Bank of the West and Wells Fargo Bank as syndication agents, and Bank of America and Union Bank of California as documentation agents. General Electric Capital Corp. is also part of the lender group.

"We are very pleased to announce this amended and restated credit agreement, which represents an exceptional improvement for dj Orthopedics," said Vickie Capps, chief financial officer, in the release. "We have made substantial improvements to our capital structure over the past year that have saved us approximately $10 million in annual interest expense.

"This latest amendment further decreases our interest expense, and perhaps more importantly, provides us with added flexibility to use borrowings under the agreement, and our strong cash flow, for broader strategic and financial purposes."

dj Orthopedics is a Vista, Calif.-based medical device company.

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