Summary
Boston Scientific Corporation (BSX) has announced the entry into a $1.000 billion 364-day term loan credit agreement, effective August 20, 2018. This new facility, maturing on August 19, 2019, carries an interest rate of LIBOR plus a 0.65% margin and will be utilized for general corporate purposes, including the repayment of commercial paper. The agreement also includes provisions for potential increases in commitments or the establishment of new credit facilities, up to an additional $500,000,000. This financing provides Boston Scientific with significant liquidity and flexibility for its short-term operational needs. Key to investors is the maintenance of a maximum leverage ratio of 3.50x, calculated on a Consolidated EBITDA basis, which indicates the company's commitment to managing its debt levels. The inclusion of customary covenants and events of default are standard for such agreements and provide a framework for the company's financial obligations.
Key Highlights
- 1Boston Scientific entered into a $1.000 billion 364-day term loan credit agreement on August 20, 2018.
- 2The new term loan matures on August 19, 2019.
- 3The interest rate for the term loan is LIBOR plus a 0.65% margin.
- 4Proceeds from the loan will be used for general corporate purposes, including commercial paper repayment.
- 5The company has the option to increase the loan facility by up to $500,000,000.
- 6The agreement includes a covenant requiring a maximum leverage ratio of 3.50x (Consolidated EBITDA basis).
- 7Wells Fargo Bank, N.A. is serving as the Administrative Agent for the credit facility.