Symmetry Medical Inc., a leading global source of innovative medical device solutions, including surgical instruments, orthopedic implants, and sterilization cases and trays, announced today that it has amended its credit agreement, enabling the Company to pay down its mezzanine debt due December 2017 ($67.0 million outstanding as of September 30, 2013) using its existing $200.0 million senior secured revolving credit facility.
The Company anticipates that lower interest payments associated with the elimination of the higher rate mezzanine debt will be approximately $0.10 accretive to 2014 earnings per share. The amendment also updates the Company’s total leverage ratio covenant as follows: 4.00x through the fourth quarter 2013 and first quarter 2014; 3.75x through second quarter 2014; 3.50x through fourth quarter 2014; and 3.25x thereafter.
Thomas J. Sullivan, President and Chief Executive Officer of Symmetry Medical, said, “While our mezzanine debt was an important enabler of our transformational investments in Symmetry Surgical in 2011, it has always been our intention to eliminate it as early as possible. With nearly $100 million in debt reduction these past two years, we are well positioned to execute this immediately accretive transaction on schedule. I want to thank our banking group for the ongoing support as we position Symmetry Medical for improved financial results.”