In the past two years, the distributor of medical, dental and veterinary equipment has completed a number of acquisitions as it expands in current markets as well as into new geographical areas. CFO Steven Paladino said the company is looking to stagger the maturities of long-term debt. The new facility has a maturity date of 2013. "The primary reason [we did the deal] was that virtually all of our long-term debt was maturing in 2009 and 2010," Paladino said. JPMorgan, the company's relationship bank, is the lead arranger.
Although Paladino said the company is not currently announcing any specific acquisitions, it has spent $200 million a year for the past two years on acquisitions as it enters new markets. "[The facility] allows us flexibility to either fund it out of the revolving credit facility or refinance it through another credit arrangement," Paladino said. The Melville-based company does business in North America, Australia and the U.K.
"Because we made sure the partner banks were relationship banks, this facility got very good pricing and was able to be done in a difficult market," Paladino said. He declined to comment on specific pricing.
