J.P. Morgan and Bank of America are in the market with a refinancing deal for medical-device maker Boston Scientific Corporation that pushes out the maturity on the company's loans. The company is converting its one-year, $600 million revolver and pushing it into a five-year deal, while the existing $1 billion five-year, maturing in 2002, will be left to expire, said Milan Kofol, v.p., treasurer.
"The five year will run its course and be replaced with a one-year facility next year," Kofol said. The new facility will probably be less, he added, declining to comment on whether the same banks would lead future deals. "We don't want to have expiration of $1.6 billion in credit at one time," Kofol noted, adding, "It's good to have a mix of multi-year facilities."
Boston Scientific kept the same banks to lead the new deal as the company had a good relationship with the syndicate, said Kofol.