Wachovia Securities is shopping a credit for Ability One, a manufacturer of medical devices for rehabilitation, and is wrapping up a credit forMedSource Technologies. The Ability One deal is a $135 million facility, split between a $20 million revolver and a $115 million term loan. Pricing on the revolver is LIBOR plus 31/ 2% and LIBOR plus 4% on the term loan, according to a banker. Up-front fees are 1% and 3/8%, respectively. The credit backs the acquisition of a company, he said, declining to name the target.
MedSource, meanwhile, is currently on the road with an equity offering and the $85 million credit will not close until the equity component is completed, explained a banker. The company is a Minneapolis-based provider of engineering and manufacturing services to the medical-device industry. The debt is split between a $25 million revolver, a $20 million delayed-draw term loan and a $40 million "A" term loan. Pricing on the three five-year tranches is LIBOR plus 21/ 2%. Tim Grace, a spokesman for MedSource, a spokeswoman for MedSource declined to comment. Officials at Wachovia also declined comment.