Teleflex gets $850 million five-year revolver at Libor plus 175 bps

By Angela McDaniels

Tacoma, Wash., July 22 - Teleflex Inc. entered into a new $850 million five-year revolving credit facility on July 16, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners.

JPMorgan Chase Bank, NA is the administrative agent. Bank of America, NA is the syndication agent. Bank of Tokyo-Mitsubishi UFJ, Ltd., HSBC Bank USA, NA, Sumitomo Mitsui Banking Corp., DNB Bank ASA, New York Branch, Citizens Bank of Pennsylvania and PNC Bank, NA are the co-documentation agents.

The initial interest rate is Libor plus 175 basis points, and the initial commitment fee is 30 bps.

The margin over Libor ranges from 125 bps to 200 bps, and the commitment fee ranges from 20 bps to 35 bps. Both depend on the company's leverage ratio.

The revolver has a $100 million sublimit for letters of credit and a $25 million sublimit for swingline loans.

The company must maintain a maximum leverage ratio of 4.0 to 1.0, a minimum interest coverage ratio of 3.5 to 1.0 and, at any time after the date that is six months prior to the maturity of the company's 3.875% convertible notes, minimum liquidity of $400 million.

The maturity date of the revolver is July 16, 2018.

The revolver is guaranteed by substantially all of the company's material domestic subsidiaries and secured by a pledge on substantially all of the equity interests owned by the company and each guarantor.

The company also terminated its amended and restated revolver dated Oct. 1, 2007.

Teleflex is based in Limerick, Pa. It makes products and services for vascular access, respiratory care, general and regional anesthesia, cardiac care, urology and surgery.

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