Biomet Inc., the Warsaw, Indiana- based maker of medical devices, is seeking to extend the maturity date of two term loans by more than two years, according to a person with knowledge of the request.
The company is extending the maturity of a U.S. dollar and a euro term loan to July 2017, said the people, who asked not to be identified because the terms are private. The U.S. loan was about $2.2 billion as of May 31, according to a July 17 regulatory filing.
The extended U.S. term loan would pay an interest rate of 375 basis points to 400 basis points more than the London interbank offered rate, the people said. The Euro loan would pay an interest rate 25 basis points more than the U.S. dollar slice. Libor is the rate at which banks say they can borrow in dollars from each other.
Investors agreeing to an amendment for the extension would be paid a 10 basis-point fee, the people said. Those that agree to also extend will be paid an additional 15 basis points. A basis point is 0.01 percentage point.
Bank of America Corp (BAC:US)., Citigroup Inc., Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are the arrangers. There will be a call on July 23 at 11 a.m. in New York to discuss the request, the people said.
Commitments for the U.S. loan are due July 25 at 5 p.m. in New York and July 26 at 2 p.m. in London for the euro loan, the people said.
Biomet was taken private by Blackstone Group LP, Goldman Sachs, KKR & Co. and TPG Capital in 2007, according to a news release.
Bill Kolter, Biomet’s corporate vice president, public affairs, didn’t immediately return a telephone call seeking comment.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds.
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