Summary
Boston Scientific Corporation (BSX) has announced an amendment to its credit agreement, specifically related to its U.S. trade accounts receivables facility. This amendment, effective June 28, 2013, extends the term of this receivables facility by two years, now expiring on June 26, 2015. This extension provides continued access to funding secured by the company's receivables. While the facility's term has been extended, its size has been reduced from $350 million to $300 million. The amendment also introduces a maximum leverage covenant, which could impact future borrowing capacity or require proactive financial management to ensure compliance. Additionally, it allows lenders to defer funding for up to 33 days under certain conditions, introducing a potential, albeit temporary, delay in fund availability. The company also made technical amendments to related agreements and modified associated fees.
Key Highlights
- 1Extension of the U.S. trade accounts receivables facility by two years to June 26, 2015.
- 2Reduction in the receivables facility size from $350 million to $300 million.
- 3Introduction of a new maximum leverage covenant into the credit agreement.
- 4Lenders now have the option to defer funding for up to 33 days on borrowing requests.
- 5Technical amendments were made to the Credit Agreement and the Receivables Sale Agreement.
- 6Certain fees associated with the credit facility have been modified via an amended fee letter.