St. Jude Medical (NYSE:STJ) is taking out a 5-year, $2.6 billion loan from Bank of America to fund its $3.4 billion purchase of Thoratec (NSDQ:THOR), according to an SEC filing.
According to the loan terms, $2.1 billion of the funds will go entirely towards the cost of acquiring Thoratec, with $500 million slated to be used to refinance existing debt and for general purposes.
The company also renewed a $1.5 billion credit agreement with BoA set to expire in 2018, pushing back the expiration date to 2020, according to the SEC filing.
The news comes shortly after the 30-day “go-shop” period in St. Jude’s pending acquisition of Thoratec lapsed without a 2nd suitor emerging, which sent the companies’ stock prices down slightly last Friday.
The merger, medtech’s latest multi-billion union, calls for St. Jude to pay $63.50 in cash for each share of Pleasanton, Calif.-based Thoratec, funded using term loans and senior unsecured debt. The acquisition is expected to close during the 4th quarter.
Last month St. Jude raised its 2015 outlook, saying it expects to post earnings of $3.96 to $4.00, up from prior guidance of $3.92 to $3.97, and boosted the top end of its constant-currency sales growth outlook from 4% to 5% to 4% to 6%.
The post St. Jude floats $2.6b for Thoratec buy appeared first on MassDevice.
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