ReAble launches $1.155 billion credit facility at Libor plus 300 bps

By Sara Rosenberg

New York, Oct. 31 - ReAble Therapeutics Inc. launched both tranches under its $1.155 billion senior secured credit facility (Ba3) on Wednesday with price talk of Libor plus 300 basis points, according to a market source.

Tranching on the facility consists of a $1.055 billion 61/2-year term loan B and a $100 million six-year revolver.

The term loan B is being offered to investors at an original issue discount of 99, the source added.

When details on the deal first emerged in July, it was said in filings with the Securities and Exchange Commission that both tranches would carry pricing of Libor plus 250 basis points, and the revolver would have a 50 bps commitment fee.

Credit Suisse and Bank of America are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of DJO Inc. for $50.25 per share in cash. The transaction is valued at $1.6 billion, including the assumption of debt.

Other acquisition financing will come from $575 million of senior unsecured notes and $408.4 million of equity from Blackstone Group, which is the controlling shareholder of ReAble, the SEC filings said.

ReAble is an Austin, Texas, medical device company focused on rehabilitation, pain management, physical therapy and orthopedics. DJO is a Vista, Calif., provider of products and services that promote musculoskeletal and vascular health.

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