ArthroCare (ARTC) scored a $100 million, five-year, secured revolving credit facility.
The Austin, Texas, developer of minimally invasive surgical products said it will use the money to fund earn-out payments associated with the Opus Medical acquisition and for general corporate purposes.
A syndicate of lenders led by Bank of America, serving as the administrative agent, and Wells Fargo Bank, serving as the syndication agent, arranged the credit facility. The line can be increased to $175 million to meet additional growth needs of the company should additional financing be required in the future.
"We are pleased our strong financial standing and outlook enabled us to establish this new credit facility under favorable terms with a syndicate of high-quality lenders," said Fernando Sanchez, senior vice president and chief financial officer at ArthroCare. "The capital this facility provides will support the company's growth as we further solidify our leadership position in minimally invasive sports medicine, spine and ENT surgery."
The company said it will post fourth-quarter results Feb. 15.