Natus Medical gets $10 million credit agreement for Bio-logic Systems acquisition

By Jennifer Chiou

New York, Jan. 9 - Natus Medical Inc. said it entered into a $10 million senior secured credit agreement for a term commitment note with Wells Fargo Bank, NA to fund its Jan. 5 acquisition of Bio-logic Systems Corp., according to an 8-K filing with the Securities and Exchange Commission.

The company entered the credit agreement on Jan. 4.

Natus announced the $68.8 million acquisition on Oct. 17. The amount includes $2.8 million resulting from options exercised to acquire Bio-logic stock.

The facility is secured by a security interest in Natus Medical's assets.

Interest is at Libor plus 250 basis points.

The note can be prepaid without penalty.

The note's outstanding balance as of the close of business on Jan. 30 is payable over 48 months, with the final payment on Dec. 31, 2009.

As already announced under the acquisition agreement, Natus acquired all Bio-logic shares at $8.77 apiece. In addition, each share subject to a Bio-logic stock option converted into an amount equal to the excess of $8.77 over the exercise price of the option.

Natus previously said it would partially finance the purchase with cash, including $7,128,000 it received from the D3 Family Funds through a private placement of 600,000 shares.

Natus, a developer and marketer of products for the detection, treatment and tracking of common disorders in newborns and children, has headquarters in San Carlos, Calif.

Mundelein, Ill.-based Bio-logic develops and markets computer-based electro diagnostic systems and disposable supplies.

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