By Lisa Kerner
Charlotte, N.C., Jan. 5 - Symmetry Medical, Inc. received $65 million of senior subordinated financing from JP Morgan Mezzanine Capital LLC/FS Investment Corp. and GSO/Blackstone Debt Funds Management LLC under a Dec. 29 credit agreement.
Proceeds will be used to complete the acquisition of some assets of Codman & Shurtleff, Inc., a subsidiary of Johnson & Johnson, Inc., according to a form 8-K filing with the Securities and Exchange Commission.
Amounts outstanding under the agreement bear interest at an annual rate of 14%.
The agreement requires Symmetry to prepay amounts outstanding under the mezzanine agreement using the net cash proceeds of certain asset sales and issuances of debt or equity.
Symmetry may elect to repay the outstanding principal amount at any time prior to Dec. 29, 2013 subject to the payment of a make-whole premium.
A prepayment made after Dec. 29, 2013 but on or prior to Dec. 29, 2014 must include a prepayment premium of 4%.
A prepayment premium of 2% of the amount prepaid is required if Symmetry makes any prepayment after Dec. 29, 2014 but on or prior to Dec. 29, 2015.
All principal and accrued interest must be repaid on Dec. 29, 2017.
The agreement includes customary covenants, including those requiring Symmetry to maintain specified ratios of consolidated total funded debt to consolidated EBITDA and of consolidated EBITDA to fixed charges, as defined in the agreement.
Repayment of amounts outstanding under the agreement is guaranteed by all of Symmetry's U.S. subsidiaries.
Symmetry Medical is a Warsaw, Ind.-based provider of medical devices, including orthopedic implants, surgical instruments, and sterilization cases and trays.
| Borrower: | Symmetry Medical, Inc.
|
| Issue: | Senior subordinated financing
|
| Amount: | $65 million
|
| Maturity: | Dec. 29, 2017
|
| Interest rate: | 14%
|
| Lenders: | JP Morgan Mezzanine Capital LLC/FS Investment Corp. and GSO/Blackstone Debt Funds Management LLC
|
| Settlement date: | Dec. 29
|
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