Steris Corporation and New Steris Limited Enters into Credit Agreement
Apr 2 15
STERIS Corporation, as a borrower and guarantor, New STERIS Limited (New STERIS), as a borrower, and various U.S. subsidiaries of the company constituting Material Subsidiaries, as guarantors, have entered into a Credit Agreement dated March 31, 2015 with various financial institutions as lenders, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., KeyBank National Association and PNC Bank, National Association as Syndication Agents, Santander Bank, N.A., The Bank of Tokyo Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corporation and DNB Capital LLC, as Documentation Agents, and J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and KeyBank National Association, as Joint Lead Arrangers and Joint Bookrunners. The company and its subsidiaries maintain existing banking relationships with a number of the lenders. The Credit Agreement replaces the company’s Third Amended and Restated Credit Agreement dated April 13, 2012 with KeyBank National Association, as Administrative Agent, and the other lenders party thereto, as amended, which was terminated and all amounts due thereunder were repaid on March 31, 2015. The company’s existing swing line facility (Committed Line of Credit) with PNC Bank, National Association, also terminated and all amounts due thereunder were repaid on March 31, 2015. The Credit Agreement provides $1,250 million of credit, in the form of a $850 million revolver facility, which may be utilized for revolving credit borrowings, swing line borrowings and letters of credit, with sublimits for swing line borrowings and letters of credit. The Credit Agreement also contains a $400 million term loan facility. The revolver and term loan facilities may be increased in specified circumstances by up to $500 million. The term loan facility may not be utilized unless, among other conditions, the proposed combination with Synergy Health plc (the 'Synergy Health Combination') is consummated, and will terminate if not used at that time. Likewise only $500 million of the revolver may be utilized unless and until the Synergy Health Combination is consummated. Term loans are repayable quarterly pursuant to a specified amortization schedule, with principal payments increasing from 1.25% to 2.5% over the term, and with a balloon payment for the remaining unpaid balance at maturity. The Credit Agreement will mature on March 31, 2020, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on that date. Borrowings also are repayable at such other earlier times as may be required under or permitted by the terms of the Credit Agreement. Borrowings bear interest at the applicable Borrower’s option based upon either the Base Rate or the Eurocurrency Rate, plus the Applicable Margin in effect from time to time under the Credit Agreement. The Applicable Margin is determined based on the ratio of Consolidated Total Debt to Consolidated EBITDA. Interest on Base Rate Advances is payable quarterly in arrears and interest on Eurocurrency Rate Advances is payable at the end of the relevant interest period therefor, but in no event less frequently than every three months. Swingline Advances bear interest at a rate to be agreed by the applicable Swingline Lender and Borrower subject to a cap for Base Rate Advances. There is no premium or penalty for prepayment of Base Rate Advances but prepayments of Eurocurrency Rate Advances are subject to a breakage fee. Credit may be extended in U.S. Dollars or in specified Alternative Currencies. The Credit Agreement contains customary representations and warranties and covenants, including restrictions on the incurrence of indebtedness by non-guarantor subsidiaries and creation of liens, and financial covenants consisting of a limitation on leverage and required minimum interest coverage. The Credit Agreement also contains customary Events of Default, which include payment and other covenant defaults, breaches of representations and warranties, change of control or failures to pay money judgments and certain defaults in respect of Material Indebtedness (indebtedness the aggregate principal amount of which exceeds the greater of $75 million or 2% of Consolidated Total Assets), upon the occurrence of which, among other remedies, the lenders may terminate their commitments and accelerate the maturity of indebtedness and other obligations under the Credit Agreement.
Steris Corp. Presents at Raymond James & Associates 36th Annual Institutional Investors Conference, Mar-02-2015 12:00 PM
Feb 26 15
Steris Corp. Presents at Raymond James & Associates 36th Annual Institutional Investors Conference, Mar-02-2015 12:00 PM. Venue: JW Marriott Grande Lakes, 4040 Central Florida Parkway, Orlando, FL 32837, United States.
Steris Corp. Reports Earnings Results for the Third Quarter and Cash Flow Results Nine Months Ended December 31, 2014; Provides Earnings Guidance for the Fiscal Year 2015; Provides Earnings Guidance for the Fourth Quarter of 2015
Feb 4 15
Steris Corp. reported consolidated unaudited earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, revenue increased 17% to $473.2 million compared with $405.6 million in the third quarter of fiscal 2014. As reported, net income was $38.1 million, or $0.63 per diluted share, compared with net income of $28.5 million, or $0.48 per diluted share in the third quarter of fiscal 2014. On an adjusted basis, net income for the third quarter of fiscal 2015 was $47.7 million, or $0.79 per diluted share, compared with adjusted net income of $34.9 million, or $0.59 per diluted share in the same prior year period. Operating income was $61.346 million compared with $55.890 million for the same period last year. Adjusted operating income was $76.997 million compared with $62.530 million for the same period last year. Capital spending was $20.2 million in the quarter.
For the nine months, the company reported net income of $93.665 million compared with $90.566 million for the same period last year. Net cash provided by operating activities was $165.210 million compared with $142.173 million for the same period last year. Purchases of property, plant, equipment, and intangibles, net was $56.757 million compared with $64.778 million for the same period last year. On an adjusted basis, net income for the third quarter of fiscal 2015 was $47.7 million, or $0.79 per diluted share, compared with adjusted net income of $34.9 million, or $0.59 per diluted share in the same prior year period. Free cash flow for the nine months of fiscal 2015 was $109.3 million, compared with $82.1 million in the first nine months of last year. The increase in free cash flow is primarily due to the impact of working capital improvements and lower capital expenditures. Adjusted net income per diluted share was $2.01 compared with $1.57 for the same period last year. Operating income was $158.937 million compared with $147.202 million for the same period last year. Adjusted operating income was $201.937 million compared with $163.603 million for the same period last year. Adjusted net income was $120.358 million compared with $93.704 million for the same period last year. Net Debt was $466.168 million compared with $317.403 million for the same period last year.
Based upon current trends, the company anticipates total company revenue growth for fiscal 2015 of approximately 15%. The company's expectations for adjusted earnings per diluted share are unchanged in the range of $2.86 to $2.91 for the full fiscal year. STERIS's outlook excludes any potential impact from the proposed Synergy Health acquisition. Net income per diluted share to be $2.30 to $2.35. Full year effective tax rate is anticipated to be approximately 35.5%.
The company expects to experience nice sequential top line growth and operating profit expansion in the fourth quarter.