Landauer finances IZI buyout with $175 million five-year revolver

By Susanna Moon

Chicago, Nov. 17 - Landauer, Inc. closed a $175 million five-year senior secured reducing revolving credit facility on Monday with BMO Harris Bank NA as administrative agent and PNC Bank, NA as syndication agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement includes a $25 million post-closing accordion.

Landauer said it borrowed about $132.9 million under the revolver to finance the acquisition of IZI Medical Products, LLC and to refinance debt.

The revolver will mature on Nov. 14, 2016 and will be secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of Landauer and its existing and future material domestic subsidiaries, including a pledge of 100% of the stock of each domestic subsidiary and a pledge of 66% of the stock of each first-tier foreign subsidiary.

Interest on the loans will initially be 275 basis points, and the margin will be Libor plus 125 bps to 275 bps, based on leverage.

The new terms require Landauer to maintain a minimum net worth of $65 million at all times, a maximum leverage ratio of 3 times to 2.5 times and a minimum fixed-charge coverage ratio of 1.15 times to 1.35 times.

In connection with the acquisition, Landauer terminated the loan agreement with U.S. Bank NA, which provided for a total unsecured commitment of $50 million set to mature on Oct. 31, 2013.

U.S. Bank NA and Fifth Third Bank are the co-documentation agents. BMO Capital Markets and PNC Capital Markets, LLC are co-lead arrangers, and BMO Capital Markets is the bookrunner.

Landauer is a Glenwood, Ill.-based provider of technical and analytical services to determine occupational and environmental radiation exposure.

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