Interventional device developer Boston Scientific of Natick, Mass., reported that it has successfully amended its $2 billion revolving line of credit and $5 billion term-loan agreement. In connection with the amended agreement, Boston Scientific prepaid $1 billion of its term loan using $750 million from cash on hand and $250 million from a credit facility secured by U.S. receivables, resulting in a gross debt reduction of $750 million.
The $1 billion prepays the company’s April 2008 term loan obligation of $650 million and reduces its $650 million April 2009 obligation by $350 million. After paying down $1 billion of its term loan, Boston Scientific said it has nearly $1 billion of cash on hand and full access to its $2 billion undrawn revolving credit facility.
The company noted that interest rate margins and fee rates for the amended credit facility remain unchanged.