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8-K - FORM 8-K - INTEGRA LIFESCIENCES HOLDINGS CORP | c04568e8vk.htm |
EX-10.1 - EXHIBIT 10.1 - INTEGRA LIFESCIENCES HOLDINGS CORP | c04568exv10w1.htm |
Exhibit 99.1
News Release |
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Contacts: |
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Integra LifeSciences Holdings Corporation |
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John B. Henneman, III
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Investor Relations: | |
Executive Vice President,
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Angela Steinway | |
Finance and Administration, |
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and Chief Financial Officer |
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(609) 275-0500
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(609) 936-2268 | |
jack.henneman@integralife.com
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angela.steinway@integralife.com |
Integra LifeSciences Establishes New $600 Million Senior Secured Credit Facility
Integra establishes a $450 million 5-year revolver and a $150 million 5-year term loan A
Integra reiterates earnings per share guidance for 2010
Plainsboro, New Jersey, August 10, 2010 Integra LifeSciences Holdings Corporation (NASDAQ: IART)
today announced that it has established a $450 million, five-year, senior secured revolving credit
facility and a $150 million, five-year, senior secured term loan A. The credit facility was
arranged by Bank of America Securities LLC and J.P. Morgan Securities, Inc. as joint lead arrangers
and joint book managers. Bank of America, N.A. is the administrative agent and JP Morgan Chase
Bank is the syndication agent. A group of 20 financial institutions comprises the syndicate of
lenders participating in the facility alongside Bank of America, N.A. and JP Morgan Chase Bank.
We are pleased that so many banks have expressed their confidence in Integra. We are gratified to
have established a new and larger credit facility under such favorable terms, said Jack Henneman,
Integras Chief Financial Officer.
The new credit facility, which amended and replaced the prior one, currently provides the
following:
| an option to increase the aggregate size of the facility by $150 million with
additional commitments, |
| an extension of the current credit facilitys maturity date from December 21, 2011 to
August 10, 2015, and |
| an increase in the applicable rates used for borrowings and the annual commitment fee. |
Integra also entered into an interest rate swap agreement, which effectively fixes the borrowing
rate on the term loan as of December 31, 2010. Currently, the borrowing rate on both the revolver
and the term loan is based on the LIBOR rate plus a rate tied to the total leverage ratio of the
company, ranging between 1.75% and 2.5%. Today, the borrowing rate on both the term loan and the
revolver is LIBOR plus 2.25%.
Integra plans to utilize the new credit facility to refinance the companys borrowings under its
existing revolver and for capital expenditures, acquisitions, share repurchases and other general
corporate purposes.
The company expects one-time costs of the refinancing transaction, which will impact third quarter
expense, to be approximately $0.5 million. Integra expects the financial impact of this new
financing to be approximately $1 million of incremental interest expense before taxes in each of
the third and fourth
quarters of 2010, and approximately $4.0 million to $5.0 million of incremental interest expense
before taxes in the full year 2011.
Despite the incremental interest expense in the third and fourth quarters, Integra reiterates its
earnings per share guidance provided last week of $1.92 to $2.07 on a GAAP basis and $2.60 to $2.75
on an adjusted basis. In accordance with our usual practice, the financial guidance above does not
include the impact of acquisitions or other strategic corporate transactions that have not yet
closed.
We have a nice pipeline of potential acquisition targets, said Stuart Essig, Integras President
and Chief Executive Officer. This new facility provides us with increased financial flexibility,
fewer covenants and access to more capital to support the companys continued growth through 2015.
Through the issuance of the term loan A and the related swap, we have locked in $150 million of
long-term fixed rate financing at approximately 4%, assuming our total leverage ratio remains the
same. This is very attractive, and reduces our exposure to upward fluctuations in interest rates in
the coming years.
***
Integra LifeSciences Holdings Corporation, a world leader in regenerative medicine, is a global
medical device company dedicated to improving the quality of life for millions of patients every
year. Our products are used primarily in orthopedics, neurosurgery and general surgery.
Headquartered in Plainsboro, New Jersey, Integra has research and manufacturing facilities
throughout the world. For more information, visit www.integralife.com.
This news release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that involve risks, uncertainties and reflect the Companys judgment
as of the date of this release. Such forward-looking statements involve risks and uncertainties
that could cause actual results to differ from predicted results. These risks and uncertainties
include market conditions and other factors beyond the Companys control and the economic,
competitive, governmental, technological and other factors identified under the heading Risk
Factors included in item IA of Integras Annual Report on Form 10-K for the year ended December
31, 2009 and information contained in subsequent filings with the Securities and Exchange
Commission could affect actual results. These forward-looking statements are made only as the date
thereof, and the Company undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or otherwise.
IART-F
Source: Integra LifeSciences Holdings Corporation
Source: Integra LifeSciences Holdings Corporation
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