PhotoMedex $85 million facility expected at Libor plus 250-325 bps

By Sara Rosenberg

New York, Feb. 14 - PhotoMedex Inc. said in an 8-K filed with the Securities and Exchange Commission on Friday that it expects its $85 million senior secured credit facility to have pricing ranging from Libor plus 250 basis points to 325 bps based on total leverage.

The facility consists of a $10 million revolver and a $75 million four-year term loan.

Initial amortization on the term loan is 20% in year one and 25% in year two.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of LCA-Vision Inc. for $5.37 per share in cash, or about $106.4 million.

Other funds for the transaction will come from $31.4 million of cash on hand.

Closing is expected in the second quarter, subject to customary conditions, including LCA-Vision shareholder approval and regulatory approvals.

There is a 30-day go-shop period.

On a pro forma basis, the combined company had revenue for the 12 months ended Sept. 30, 2013 of about $308 million, gross profit of around $244 million, gross margin of roughly 79% and adjusted net income of about $36 million.

PhotoMedex is a Horsham, Pa.-based skin health company providing integrated disease management and aesthetic solutions to dermatologists, professional aestheticians and consumers. LCA-Vision is a Cincinnati-based provider of laser vision correction services under the LasikPlus brand.

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