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LANTHEUS MEDICAL IMAGING, INC. FILES (8-K) Disclosing Entry into a Material Definitive Agreement

June 24, 2014



Item 1.01. Entry into a Material Definitive Agreement.

On June 24, 2014, the registrant, Lantheus Medical Imaging, Inc. ("we" or the "Company"), entered into an amendment to our Amended and Restated Credit Agreement, dated as of July 3, 2013, by and among the Company, as borrower, Lantheus MI Intermediate, Inc., the immediate parent of the Company ("Lantheus Intermediate"), and Lantheus MI Real Estate, LLC, a subsidiary of the Company ("Lantheus Real Estate"), each as guarantors, and Wells Fargo Bank, National Association, a national banking association, as sole lead arranger, bookrunner, administrative agent and syndication agent. The amendment, among other things, increased the revolving credit commitments under our revolving credit facility from a maximum aggregate principal amount of $42.5 million to $50.0 million; provided that, subsequent to the amendment, borrowings in excess of $42.5 million thereunder are subject to certification of compliance with (x) the debt and lien covenants under the indenture for our outstanding 9.750% senior notes due 2017, or the Notes, and (y) an additional $3.0 million of secured debt capacity under the indenture for the Notes.

Subsequent to the amendment, the revolving loans under our revolving credit facility bear interest, with pricing based from time to time at our election at (i) LIBOR plus a spread of 2.00% or (ii) the Reference Rate (as defined in our revolving credit facility) plus a spread of 1.00%. Our revolving credit facility continues to include an unused line fee, which, subsequent to the amendment, is set at 0.375%. Our revolving credit facility still expires on the earlier of (i) July 3, 2018 or (ii) if the outstanding Notes are not refinanced in full, the date that is 91 days before the maturity thereof, at which time all outstanding borrowings are due and payable.

Our unfunded Standby Letter of Credit requires annual fees, payable quarterly, which, subsequent to the amendment, is set at LIBOR plus a spread of 2.00% and expires on February 5, 2015, which will automatically renew for a one year period at each anniversary date, unless we elect not to renew in writing within 60 days prior to such expiration.

As amended, our revolving credit facility is secured by a pledge of substantially all of the assets of the Company, together with the assets of Lantheus Intermediate and assets of Lantheus Real Estate, including each such entity's accounts receivable, inventory and machinery and equipment, and is guaranteed by each of Lantheus Intermediate and Lantheus Real Estate. Borrowing capacity is still determined by reference to a borrowing base, which is based on (i) a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus (ii) any reserves.

The rest of the material terms and conditions of our revolving credit facility remain the same.

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Source: Edgar Glimpses


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