ResMed closes $800 million restated revolver, $200 million term loan

By Marisa Wong

Morgantown, W.Va., April 19 – ResMed Inc. entered into an amended and restated credit agreement on April 17 for an $800 million senior unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

MUFG Union Bank, NA and Westpac Banking Corp. are the joint lead arrangers and joint bookrunners with MUFG as administrative agent and Westpac as syndication agent.

The credit agreement amends and restates the company’s credit agreement dated Oct. 31, 2013, which provided ResMed with a senior unsecured revolving credit facility totaling $1.3 billion.

The restated credit agreement includes an uncommitted option to increase the facility by an additional $300 million.

The restated revolver terminates on April 17, 2023.

Borrowings will bear interest at Libor plus 75 basis points to 150 bps, depending on the company’s leverage ratio. The applicable spread is initially 100 bps.

An applicable commitment fee of 10 bps to 17.5 bps, also based on the leverage ratio, applies on the unused portion of the revolver. The fee is initially 12.5 bps.

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

Proceeds will be used for general corporate purposes.

Also on April 17, ResMed entered into a $200 million senior unsecured term credit facility.

MUFG and Westpac are the joint lead arrangers and joint bookrunners, with MUFG as administrative agent and Westpac as syndication agent.

The term facility terminates on April 17, 2023.

The facility will amortize on a semiannual basis, with a $6 million principal payment required on each semiannual amortization date.

Loans will bear interest at Libor plus 75 bps to 150 bps, depending on leverage ratio. The applicable spread is initially 100 bps.

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

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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