ResMed gets $700 million revolver due 2018 at Libor plus 100 bps

By Angela McDaniels

Tacoma, Wash., Nov. 5 - ResMed, Inc. entered into a $700 million senior revolving credit facility due Oct. 31, 2018 on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Union Bank, NA is the administrative agent, joint lead arranger, swingline lender and letters of credit issuer. HSBC Bank USA, NA is the syndication agent and joint lead arranger.

The revolver has a $300 million accordion feature and a $25 million sublimit for letters of credit.

The initial interest rate is Libor plus 100 basis points. The margin over Libor ranges from 100 bps to 200 bps depending on the company's leverage ratio.

The initial commitment fee is 15 bps. It ranges from 15 bps to 25 bps depending on leverage.

At closing, the company drew on the revolver to repay the outstanding balance under its previously existing revolver with Union Bank as administrative agent, which was then terminated.

Under the credit agreement's financial covenants, the company must maintain a ratio of funded debt to EBITDA of no more than 3 to 1 and an interest coverage ratio of at least 3 to 1.

The revolver is guaranteed by subsidiaries ResMed Corp. and ResMed Motor Technologies Inc.

San Diego-based ResMed makes products for the diagnosis and treatment of sleep-disordered breathing.

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