Teleflex to amend facility to extend some debt at increased pricing

By Sara Rosenberg

New York, Aug. 2 - Teleflex Inc. entered into an agreement on Monday to amend its credit facility to extend the maturity of $363.9 million of the $400 million term loan and $366.3 million of the $400 million revolver by two years to Oct. 1, 2014, according to an 8-K filed with the Securities and Exchange Commission.

The amendment would also increase pricing on the extended debt to a range of Libor plus 150 basis points to 275 bps from a range of Libor plus 62.5 bps to 150 bps.

Also, the commitment fee would increase to a range of 37.5 bps to 50 bps from a range of 15 bps to 30 bps, based on total debt to EBITDA.

There would be a $200 million accordion feature under the amended agreement.

In addition, the amendment would permit $200 million of unsecured senior subordinated or subordinated notes and revise the definition of consolidated EBITDA.

The amendment will become effective when the company completes its sale of $350 million of convertible senior subordinated notes and repays $200 million of its term loan with proceeds from the convertibles. Remaining proceeds will be used to repay the company's $196.6 million of senior notes issued in 2007.

There is a portion of the amendment that is already effective. This part entails revisions to the restrictions on debt, restricted payments and swap agreements and an event of default provision.

Teleflex is a Limerick, Pa.-based provider of medical technology products.

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