Business
Sotera Health Amends and Upsizes Revolving Credit Facility
CLEVELAND, March 21, 2023 (GLOBE NEWSWIRE) -- Sotera Health Company (“Sotera Health” or the “Company”) (Nasdaq: SHC), a leading global provider of
About this update from Sotera Health Company
[{"type":"text","content":"CLEVELAND, March 21, 2023 (GLOBE NEWSWIRE) -- Sotera Health Company (“Sotera Health” or the “Company”) (Nasdaq: SHC), a leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry, today announced that it has successfully closed on an amendment (the “Amendment”) to its First Lien Credit Agreement (the “Credit Agreement”). The Amendment adds revolving loan commitments of $76.3 million, increasing the total aggregate principal amount of available commitments under the Company’s revolving credit facility (“Revolving Credit Facility”) from $347.5 million to $423.8 million. The Amendment also increases lender commitments for the issuance of letters of credit under the Revolving Credit Facility from approximately $196 million to $361 million and provides for the replacement of the LIBOR-based reference interest rate option for Revolving Loans (as defined in the Credit Agreement) with a reference rate option based on the Term Secured Overnight Financing Rate (“Term SOFR”) or Daily Simple SOFR (“Daily SOFR”) plus an applicable credit spread adjustment of 0.10% (subject to a minimum floor of 0.00%). The additional revolving credit capacity secured by the Company will be used for general corporate purposes, as needed. There is no balance outstanding on the Revolving Credit Facility and the Company currently does not expect to incur any borrowings under the Revolving Credit Facility. “We are pleased to announce the successful completion of the upsize to our Revolving Credit Facility,” said Chairman and Chief Executive Officer, Michael B. Petras, Jr. “This amendment provides the Company with ample liquidity in addition to the strong cash generating profile of our business and is a testament to the Company’s credit rating and the solid relationship with our lending group.” No unamortized debt issuance costs associated with the Revolving Credit Facility were required to be written off, and direct fees and costs incurred in connection with the Amendment were not material. Borrowings under the Revolving Credit Facility denominated in U.S. dollars will bear an interest rate, at the Company’s option, of either (x) Term SOFR or Daily Simple SOFR, as applicable, plus an applicable margin of 2.75% or (y) the base rate plus an applicable margin of 1.75%. The Amendmen...