Irvine, Calif.-based Edwards Life Sciences Corporation, a provider of products and services used in the treatment of late-stage cardiovascular disease, has completed the replacement of its 364-day revolving credit facility, with a downsized $175 million revolver. The previous $650 million credit comprised a $430 million, five-year revolver and a one-year, $220 million facility. The $430 million credit is still in place, noted Daniel Gallagher, assistant treasurer, but the shorter-term loan has been pared down to suit the requirements of the company.
J.P. Morgan Chase, Bank of Novia Scotia and Credit Suisse First Boston were chosen as mandated arrangers, with CSFB taking the book runner role, said Gallagher. He cited reputation in the market and aggressiveness in marketing the deal as key factors in selecting the banks.
Pricing on the new revolver was also crucial, said Gallagher, with LIBOR plus 107.5 basis points and a 17.5 basis point facility fee fitting the bill. The previous deal was priced at 11/4 % over LIBOR. Cardiovascular disease, the leading cause of death in the world, underpins the company's growth strategy.