PhotoMedex firms pricing on $85 million loan at Libor plus 250-325 bps

By Marisa Wong

Madison, Wis., May 13 - PhotoMedex, Inc. disclosed pricing on its new $85 million credit facility in an 8-K filed Tuesday with the Securities and Exchange Commission.

PhotoMedex entered into a credit agreement on May 12 for $75 million of term loans and a $10 million revolver, both priced at Libor plus 250 basis points to 325 bps.

There is also a commitment fee of 40 bps to 50 bps. The Libor spread and commitment fee are based on the company's leverage ratio.

The term loans and the revolver mature on May 31, 2018.

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

At closing, PhotoMedex borrowed the full $85 million to help finance its previously announced acquisition of LCA-Vision, Inc. The transaction, valued at $106.5 million in cash, was completed on Tuesday.

JPMorgan Chase Bank, NA is the administrative agent under the credit agreement. J.P. Morgan Securities LLC is the lead arranger and bookrunner. First Niagara Bank, NA and PNC Bank, NA are co-syndication agents.

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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