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LivaNova Announces Early Retirement of $450 Million Term Loan and Executes $125 Million Revolving Credit Facility
Announcement follows closing of underwritten offering of ordinary shares LONDON--(BUSINESS WIRE)-- LivaNova PLC (NASDAQ:LIVN), a market-leading medical
About this update from Livanova Plc
[{"type":"text","content":"\nAnnouncement follows closing of underwritten offering of ordinary shares\n\n LONDON--(BUSINESS WIRE)--\nLivaNova PLC (NASDAQ:LIVN), a market-leading medical technology and innovation company, today announced the early retirement of its $450 million five-year senior secured term loan (the Term Loan). To retire the Term Loan, LivaNova repaid the $450 million principal amount outstanding, plus accrued interest and an approximately $35.6 million make-whole premium (including $28.8 million, which is the present value of interest through June 17, 2022 and a $6.8 million termination fee). The repayment was funded by proceeds from an underwritten offering of ordinary shares that closed on August 6, 2021 (including the full exercise of the underwriters’ option) and cash on hand. Early retirement of the Term Loan, which bore interest on a floating-rate basis, will result in reduced interest expense of approximately $39 million on an annualized basis (based on currently prevailing rates), including approximately $5 million of amortization of debt issuance costs.\n\nIn addition, LivaNova today announced the execution of a $125 million secured revolving credit facility (the Credit Facility) with Goldman Sachs Bank USA as agent, and Goldman Sachs Bank USA, Barclays Bank PLC and UBS AG, Stamford Branch as lenders. The Credit Facility will be available for general corporate purposes.\n\nAfter giving effect to retirement of the Term Loan and completion of the equity offering, LivaNova now expects full-year 2021 adjusted diluted earnings per share from continuing operations to be in the range of $1.75 to $2.05 and full-year 2021 adjusted free cash flow to be in the range of $50 to $70 million. These metrics exclude the impact of the $35.6 million make-whole premium described above.\n\n“The successful completion of these transactions represents a significant step toward enhancing our liquidity position, provides improved terms and conditions, and creates financial flexibility,” said Alex Shvartsburg, Chief Financial Officer of LivaNova.\n\nThe Credit Facility has a five-year term and bears interest at a rate equal to, for U.S. dollar-denominated loans, an adjusted London Interbank Offered Rate (LIBOR), with a floor of 0.00%, or a base rate determined under the terms of the Credit Facility, plus, in each case, a variable margin based on LivaNova’...