Integer Reduces Borrowing Costs and Increases Flexibility with New Senior Secured Credit Facilities

Rhea-AI Summary

Integer Holdings Corporation (NYSE: ITGR) has announced a successful refinancing of its debt through the establishment of $1 billion in Senior Secured Credit Facilities. The new five-year $400 million Revolving Credit Facility, $250 million Term Loan A, and seven-year $350 million Term Loan B are expected to enhance operational flexibility and reduce borrowing costs. This transaction will improve future annualized diluted earnings per share by approximately $0.15 and extend the nearest debt maturity from 2022 to 2026.

Both Moody's and S&P upgraded the company's credit ratings to Ba3/BB- following this restructuring.

Positive

• Debt refinancing expected to improve annualized diluted earnings per share by $0.15.
• Nearest debt maturity extended from 2022 to 2026.
• Liquidity increased by approximately $120 million.
• Moody's and S&P upgraded credit ratings to Ba3/BB-.

Negative

• None.

PLANO, Texas, Sept. 02, 2021 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE: ITGR), a leading medical device outsource manufacturer, today announced that as a result of its financial strength and favorable debt markets, the company has successfully raised $1 billion in Senior Secured Credit Facilities (“New Facilities”) to refinance its existing debt (the “Transaction”). The New Facilities consist of a five-year $400 million Revolving Credit Facility, a five-year $250 million Term Loan A and a seven-year $350 million Term Loan B. The Transaction reduces overall borrowing costs, extends tenor, resets financial covenants to enhance operating flexibility, and increases liquidity through a higher level of revolver capacity.

New Facilities highlights:

• This debt refinancing is expected to improve Integer’s future annualized diluted earnings per share by approximately $0.15, based on today’s outstanding debt and current interest rates
• Nearest debt maturity extended by four years from 2022 to 2026
• Improved key credit documentation terms that provide flexibility for ongoing operating and strategic initiatives
• Liquidity (cash + revolver availability) increased by approximately $120 million
• In conjunction with this transaction, both Moody’s & S&P have upgraded Integer’s corporate family and senior secured ratings to Ba3/BB- (each with stable outlooks)
  

“Our new credit facilities are consistent with the execution of our disciplined capital structure strategy,” said Jason Garland, Integer’s executive vice president and chief financial officer. “We were able to lower our borrowing cost and create incremental flexibility to invest in Integer’s growth plans. As we invest, our target to maintain net total debt to adjusted EBITDA leverage in the range of 2.5 to 3.5 times remains unchanged. We appreciate the strong support of our lenders in completing these new facilities.”

Wells Fargo Bank, National Association is acting as Administrative Agent, Swingline Lender and Issuing Lender. Wells Fargo Securities, LLC, BofA Securities, Inc., Fifth Third Bank, National Association, Keybanc Capital Markets, Inc., Citigroup Global Markets Inc. and Santander Bank, N.A. acted as Joint Lead Arrangers and Joint Bookrunners.

Additional information regarding the terms of the New Facilities can be found on our Form 8-K filed with the Securities and Exchange Commission today.

About Integer^®
Integer Holdings Corporation (NYSE: ITGR) is one of the largest medical device outsource (MDO) manufacturers in the world serving the cardiac, neuromodulation, vascular, portable medical, advanced surgical and orthopedics markets. The company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, it develops batteries for high-end niche applications in energy, military, and environmental markets. Greatbatch Medical^®, Lake Region Medical^® and Electrochem^® comprise the company’s brands. Additional information is available at www.integer.net.

Forward-Looking Statements
Some of the statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the statements relating to our expectation of the benefits of the New Facilities. These forward-looking statements are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or variations or the negative of these terms or other comparable terminology. These statements are subject to risks, uncertainties and assumptions and are only predictions and actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements, you should carefully consider a number of factors, including, but not limited to, risks and uncertainties that arise from time to time and are described in Item 1A “Risk Factors” of our Annual Report on Form 10-K and in our other periodic filings with the SEC. Except as may be required by law, we assume no obligation to update forward-looking statements in this press release, whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.

Investor Relations
Tony Borowicz
tony.borowicz@integer.net
716.759.5809

Media Relations
Kelly Butler
kelly.butler@integer.net
214.618.4216

FAQ

What are the key details of Integer Holdings Corporation's new credit facilities?

Integer Holdings Corporation has established $1 billion in new Senior Secured Credit Facilities, including a $400 million Revolving Credit Facility, a $250 million Term Loan A, and a $350 million Term Loan B.

How will the refinancing of debt impact ITGR's earnings?

The refinancing is expected to improve Integer's annualized diluted earnings per share by approximately $0.15.

What is the new debt maturity timeline for Integer Holdings Corporation?

The nearest debt maturity has been extended from 2022 to 2026.

Which financial institutions were involved in Integer's refinancing process?

Wells Fargo Bank acted as the Administrative Agent, with support from BofA Securities, Fifth Third Bank, Keybanc Capital Markets, Citigroup Global Markets, and Santander Bank.

What recent upgrades did Integer Holdings Corporation receive from credit rating agencies?

Both Moody's and S&P upgraded Integer's corporate family and senior secured ratings to Ba3/BB-, each with stable outlooks.