Medical Action gets $110 million amended and restated credit facility

By Sara Rosenberg

New York, Aug. 30 - Medical Action Industries Inc. closed on a $110 million amended and restated secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan acted as the lead arranger, bookrunner and administrative agent on the deal that was completed on Aug. 27.

The facility consists of an $80 million term loan and a $30 million revolver.

Initial pricing on the facility is Libor plus 275 basis points, and the revolver has a 50 bps unused fee. Pricing can range from Libor plus 225 bps to 300 bps and the unused fee can range from 35 bps to 50 bps, based on leverage.

Covenants include a capital expenditure limit of $10 million per fiscal year, a minimum fixed-charge coverage ratio of 1.25:1.00, and a maximum leverage ratio of 3.50:1.00 until June 30, 2011, 3.25:1.00 until June 30, 2012, 3.00:1.00 until Dec. 31, 2012, 2.75:1.00 until Dec. 31, 2013 and 2.50:1.00 thereafter.

Proceeds were used to refinance existing debt and fund the acquisition of AVID Medical Inc. and are also available for general corporate purposes.

Medical Action is a Brentwood, N.Y.-based manufacturer and distributor of disposable medical devices.

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