Integer amends credit facility to increase leverage ratio

By Wendy Van Sickle

Columbus, Ohio, July 14 – Integer Holdings Corp. completed an amendment to its senior secured credit facility as a precautionary step during the Covid-19 pandemic, according to a news release.

Integer said it expects to maintain compliance with its covenant net leverage ratio and requested a covenant modification as a precautionary measure to provide additional cushion to allow for continued bolt-on merger and acquisition activity and protect against a prolonged pandemic.

The net leverage ratio was increased to 4.75 to 1.00 from 4.00 to 1.00 for the period beginning with the third fiscal quarter of 2020 through the second fiscal quarter of 2021.

In the third fiscal quarter of 2021, the covenant steps down to 4.50 to 1.00 for one quarter until it reverts to the existing ratio through maturity.

Additionally, Integer added a feature where its net leverage ratio can be increased by 0.50 for up to four consecutive quarters commencing in any fiscal quarter in which Integer consummates an acquisition with a $40 million or greater purchase price.

In connection with the amendment, Integer agreed to pay each consenting lender an advanced amendment fee of 0.1% of the borrowing capacity on the revolver and term loan A. It will also pay the consenting lenders a deferred amendment fee, payable in installments of 0.03125% of the outstanding revolver and term loan A each quarter through maturity, for any quarter Integer’s covenant net leverage ratio equals or exceeds 3.00 to 1.00.

Integer is a Plano, Tex.-based medical device outsourcing manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.