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What are the details?
Greatbatch, Inc. (NYSE:GB) today announced that its wholly-owned subsidiary Greatbatch Ltd. had priced its previously announced private offering of $360 million aggregate principal amount of senior notes due 2023 at an issue price of 100%. The notes will have a coupon of 9.125% and will mature on November 1, 2023.
The sale of the notes is expected to close on October 27, 2015, subject to customary closing conditions. Greatbatch intends to use the net proceeds from the notes as part of the financing for its previously announced acquisition of Lake Region Medical Holdings, Inc. The Lake Region acquisition is currently expected to close in late October.
If the offering of the notes closes prior to the closing of the Lake Region acquisition, the gross proceeds from the offering (together with an additional amount representing interest payable on the notes through the date that is five business days after February 23, 2016) will be deposited into an escrow account until closing of the acquisition.
If the closing of the Lake Region acquisition does not occur on or prior to February 23, 2016, or Greatbatch determines not to pursue the acquisition or the acquisition agreement is terminated, the notes will be subject to a special mandatory redemption at a redemption price equal to 100% of the initial issue price of the notes, plus accrued and unpaid interest to, but not including, the special mandatory redemption date.
Upon consummation of the acquisition, Greatbatch, Inc. and certain of its U.S. subsidiaries (including certain U.S. subsidiaries acquired in connection with the Lake Region acquisition) will guarantee the notes.
