Teleflex plans $750 million term loan, considering future notes sale

By Sara Rosenberg

New York, Dec. 2 – Teleflex Inc. plans on getting a new $750 million senior secured term loan and drawing $250 million under its revolving credit facility to fund the acquisition of Vascular Solutions Inc., company officials said in a conference call on Friday.

Following closing, the company may opportunistically issue senior unsecured notes to repay revolver borrowings or term loan borrowings.

It is expected that the all-in interest rate on the revolver and term loan borrowings will be around 3%, and any notes issued would potentially have an interest rate in the rage of 5½%, officials continued

The company has received a commitment from JPMorgan Chase Bank for a new $750 million senior unsecured bridge facility in connection with the planned acquisition but does not plan on using it because it intends to use the new term loan and revolver draw instead.

Over the long-term, Teleflex intends to maintain its debt to adjusted EBITDA at around 3 times.

Under the agreement, Vascular Solutions is being bought for $56.00 per share. The transaction is valued at about $1 billion.

Closing is expected in the first half of 2017, subject to approval by Vascular Solutions’ shareholders, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary conditions.

Teleflex is a Wayne, Pa.-based provider of medical technologies. Vascular Solutions is a Minneapolis-based medical device company that focuses on developing clinical solutions for minimally invasive coronary and peripheral vascular procedures.

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