Summary
Boston Scientific Corporation (BSX) has executed significant financing agreements on February 26, 2026, including a $3.0 billion revolving credit facility maturing in five years (2026 Revolving Credit Agreement) and a $2.0 billion 364-day revolving credit facility. Additionally, the company entered into a $6.0 billion term loan credit agreement (Term Loan Credit Agreement), featuring a $1.0 billion delayed draw term loan and a $5.0 billion delayed draw term loan, both set to mature 364 days after the closing of the Penumbra, Inc. acquisition. These new credit facilities collectively provide substantial liquidity and are crucial for funding the pending acquisition of Penumbra, Inc. The agreements include customary covenants and events of default, with a key financial covenant being a Maximum Leverage Ratio. Notably, this ratio can temporarily increase to 4.75x following a Qualified Acquisition, providing operational flexibility during integration periods. The company also terminated its prior 2021 revolving credit agreement in conjunction with these new arrangements.
Key Highlights
- 1Secured a new $3.0 billion, 5-year revolving credit facility (2026 Revolving Credit Agreement).
- 2Entered into a $2.0 billion, 364-day revolving credit facility, with its maturity potentially tied to the Penumbra acquisition closing.
- 3Established a $6.0 billion term loan credit facility to fund the acquisition of Penumbra, Inc., comprising a $1.0 billion and a $5.0 billion delayed draw tranche.
- 4The new credit agreements replace the prior 2021 revolving credit agreement.
- 5The agreements contain a Maximum Leverage Ratio covenant, with provisions for temporary increases following a Qualified Acquisition.
- 6Interest rates on borrowings are based on SOFR, Alternate Base Rate (ABR), or Eurocurrency rates, plus applicable margins tied to the Company's Credit Rating.
- 7The new financing provides significant liquidity to support the pending acquisition of Penumbra, Inc.