ConvaTec, which just named a new CEO and is rumored to be up for sale, plans to raise nearly $1.9 billion in loan and credit facilities in a debt-refinancing move.
The Luxembourg-based medical device company will seek $1.65 billion in term loan facilities and a $200 million revolving credit facility, both due in 2020. Plans call for using the money to refinance existing credit facilities and senior secured notes, the company said.
A ConvaTec representative told MassDevice.com that the refinancing is "leverage-neutral, and will provide us with an improved maturity profile."
ConvaTec said it will offer further details about the refi plan during a lender meeting in London planned for tomorrow and another in New York May 20.
ConvaTec makes products for wound care, ostomy care and infusion. Earlier this month, it named its interim CEO, former EMEA president Paul Moraviec, as its new, permanent CEO.
Private equity firms Avista Capital Partners and Nordic Capital own ConvaTec. They brought on Moraviec in 2009 to lead Convatec’s business in Europe, the Middle East and Asia. He became interim CEO last December.
In late 2014, reports surfaced that ConvaTec had appointed Morgan Stanley and Goldman Sachs to explore a sale of the company that could be worth as much as $10 billion.
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