Now that everyone has said yes, Boston Scientific has gone to the banks to sign a number of new lending agreements, including a large credit facility it could use to finance its $4.2 billion acquisition offer for British medical device maker BTG plc.
The information, which came from recently posted SEC filings, indicated that the Marlborough, Mass.-based company has entered into a term loan credit agreement with Barclays Bank for an aggregate principal amount of $2 billion, consisting of a two-year delayed-draw facility for $1 billion and a three-year delayed draw facility for $1 billion.
Both parts of the credit agreement begin to mature two or three years, respectively, after the closure of the possible BTG acquisition. Boston Scientific has also amended an existing $1 billion credit agreement it negotiated in August to help fund the BTG acquisition.
Outside of the acquisition funds, the company said also agreed to a $2.75 billion revolving credit agreement with Bank of America serving as syndication agent and Wells Fargo Bank, NA serving as the administrative agent. The credit facility will mature in 2023 and includes one-year extension options. VTN
