ResMed closes $1.5 billion restated revolver, $200 million term loan

By Wendy Van Sickle

Columbus, Ohio, June 30 – ResMed Inc. entered into an amended and restated credit agreement on June 29 for a $1.5 billion senior revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s credit agreement dated April 17, 2018, which provided ResMed with a senior unsecured revolving credit facility totaling $1.6 billion.

The restated credit agreement includes an uncommitted option to increase the facility by an additional $1 billion, or more, depending on the EBITDA of ResMed and its subsidiaries on a consolidated basis for the trailing 12-month measurement period.

The restated revolver terminates on June 29, 2027.

Borrowings will bear interest at an adjusted term SOFR plus a margin ranging from 75 basis points to 150 bps, depending on the company’s leverage ratio. Adjusted term SOFR is SOFR plus a 10 bps adjustment. The applicable spread is initially 75 bps.

An applicable commitment fee of 7.5 bps to 15 bps, also based on the leverage ratio, applies on the unused portion of the revolver. The fee is initially 7.5 bps.

The credit agreement contains a financial covenant requiring ResMed to maintain a maximum leverage ratio of funded debt to EBITDA.

MUFG Union Bank, NA is the administrative agent and bookrunner and is a lead arranger along with Westpac Banking Corp., HSBC Bank Australia Ltd. and HSBC Bank USA, NA. Westpac, HSBC Bank Australia and HSBC Bank are syndication agents. Wells Fargo Bank, NA is the documentation agent.

Proceeds will be used for general corporate purposes.

Also on June 29, ResMed entered into a $200 million senior term credit facility.

The term facility also terminates on June 29, 2027.

The facility will amortize on a semiannual basis, with a $5 million principal payment required on each semiannual amortization date.

Loans will bear interest at the adjusted term SOFR plus 75 bps to 150 bps, depending on the leverage ratio. The applicable spread is initially 75 bps.

The term credit agreement also requires ResMed to maintain a maximum leverage ratio of funded debt to EBITDA.

MUFG Union Bank, NA is the administrative agent and bookrunner and is a joint lead arranger long with Westpac and HSBC Ltd., Sydney Branch. Westpac and HSBC are the syndication agents. Wells Fargo Bank, NA is the documentation agent.

Proceeds will be used to refinance debt and for other general corporate purposes.

ResMed is a San Diego-based medical device company focused on the diagnosis, treatment and management of sleep-disordered breathing, COPD and other chronic conditions.

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