Revised credit deal gives Boston more breathing space:
This article was originally published in Clinica
Executive Summary
Boston Scientific has renegotiated the terms of a $2bn revolving credit line and $5bn loan agreement, which will provide the Natick, Massachusetts company with "significant financial flexibility" as it pursues its strategy to boost shareholder value. It added that it has paid off $1bn of the loan, leaving it with nearly $1bn cash on hand and full access to $2bn of available revolving credit. Interest rate margins and fee rates for the amended credit facility remain unchanged. Boston's weakening product sales, amid sluggish market conditions, and heavy debt related to its Guidant acquisition have prompted the company to undertake a number of restructuring initiatives to help its finances. These initiatives include divesting non-core assets and cutting expenses and the size of its workforce.