BOSTON, Aug 31, 2010 (BUSINESS WIRE) -- Orthofix International N.V. (NASDAQ: OFIX) (the Company) announced today
that it has established a new $300 million five-year credit facility,
including a $200 million senior secured revolving line of credit and a
$100 million senior secured term loan. JP Morgan Chase Bank, N.A. acted
as Sole Bookrunner and Joint Lead Arranger along with RBS Citizens. JP
Morgan Chase Bank, N.A. is acting as Administrative Agent and RBS
Citizens, N.A. acted as Syndication Agent for the bank syndication that
included a group of nine other financial institutions.
"We are very pleased with the confidence expressed by the financial
institutions participating in our new larger facility, which will
provide Orthofix with a lower interest rate and more flexible covenants
as well as additional borrowing capacity and available credit compared
with our previous credit facility," said Bob Vaters, Orthofix's
Executive Vice President and Chief Financial Officer.
The new credit facility, which replaces the Company's prior facility,
includes a $50 million expansion feature and currently includes an
interest rate of LIBOR plus 3.00% on both the revolving line of credit
and the term loan. This compares with a rate of 6.75% the Company had
been paying on its prior facility.
Orthofix plans to use the proceeds from the new facility to pay off the
Company's prior facility as well as for capital expenditures and other
general corporate purposes.
The Company expects earnings per diluted share in the fourth quarter to
increase by $0.05 from the new facility but does not expect any impact
on third quarter earnings due to the interest savings being offset by a
$500,000 charge to write-off the unamortized debt placement costs
associated with the prior facility.
About Orthofix
Orthofix International, N.V. is a global medical device company offering
a broad line of minimally invasive surgical, and non-surgical, products
for the spine, orthopedic, and sports medicine market sectors that
address the lifelong bone-and-joint health needs of patients of all
ages-helping them achieve a more active and mobile lifestyle. Orthofix's
products are widely distributed around the world to orthopedic surgeons
and patients via Orthofix's sales representatives and its subsidiaries,
including BREG, Inc. and via partnerships with other leading orthopedic
product companies. In addition, Orthofix collaborates with leading
medical institutions such as the Musculoskeletal Transplant Foundation,
the Orthopedic Research and Education Foundation, and The University of
Medicine and Dentistry of New Jersey. For more information about
Orthofix, please visit www.orthofix.com.
FORWARD-LOOKING STATEMENTS
This communication contains certain forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements, which may include, but are not limited to, statements
concerning the projections, financial condition, results of operations
and businesses of Orthofix and its subsidiaries and are based on
management's current expectations and estimates and involve risks and
uncertainties that could cause actual results or outcomes to differ
materially from those contemplated by the forward-looking statements.
Factors that could cause or contribute to such differences may include,
but are not limited to, risks relating to the expected sales of its
products, including recently launched products, unanticipated
expenditures, changing relationships with customers, suppliers,
strategic partners and lenders, changes to and the interpretation of
governmental regulations, ongoing litigation matters and governmental
investigations of our businesses which could result in civil or criminal
liability or findings of violations of law (as further described in the
"Legal Proceedings" sections of our annual report on Form 10-K,
quarterly reports on Form 10-Q, and our report on Form 8-K dated June
23, 2010), risks relating to the protection of intellectual property,
changes to the reimbursement policies of third parties, the impact of
competitive products, changes to the competitive environment, the
acceptance of new products in the market, conditions of the orthopedic
industry, credit markets and the economy, corporate development and
market development activities, including acquisitions or divestitures,
unexpected costs or operating unit performance related to recent
acquisitions, and other factors described in our annual report on Form
10-K and other periodic reports filed by the Company with the Securities
and Exchange Commission (SEC).
SOURCE: Orthofix International N.V.
Orthofix International, N.V.
Dan Yarbrough, 617-912-2903
Vice President of Investor Relations
danyarbrough@orthofix.com
Copyright Business Wire 2010