Oct 28 2010
Invacare Corporation (NYSE:IVC) ("Invacare" or the "Company") announced today the completion of a new Credit Agreement establishing a $400 million senior secured revolving credit facility maturing in October 2015.
A portion of the proceeds from the new senior secured credit facility will be used to:
As previously announced, the Company is currently conducting a tender offer for its 9 ¾% senior notes due 2015. If any or all of the senior notes are not purchased by the Company in the tender offer, Invacare intends to redeem the remaining notes in February 2011, subject to the Company's discretion and the terms of the notes and related indenture.
Borrowings under the new senior secured revolving credit facility will bear interest based primarily on the Company's leverage ratio. Based on the Company's current leverage ratio, borrowings under the new senior secured revolving credit facility will bear interest at LIBOR plus a margin of 2.50%, with an initial commitment fee of 0.40% per annum. The Company's obligations under the new senior secured revolving credit facility are secured by substantially all of the Company's U.S. assets and are guaranteed by substantially all of its material domestic and foreign subsidiaries.
"We are very pleased to have completed the refinancing of our senior secured credit facilities which will allow the Company to repay its high interest rate debt over time. We would like to thank our lenders for their support of the new senior secured revolving credit facility," said Gerald B. Blouch, interim Chief Executive Officer.
This press release is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to any securities. The tender offer for the Company's 9 ¾% senior notes due 2015 is being made solely by the Offer to Purchase and Consent Solicitation Statement dated October 1, 2010 and is not being made to holders of such notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is not a notice of redemption under the indenture governing the Company's 9 ¾% senior notes. Any such notice, if made, will only be made in accordance with the provisions of such indenture.
Source: Invacare Corporation