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Colfax completes $3B deal

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Annapolis Junction-based Colfax Corp. has entered into a new $3 billion credit agreement with a group of 23 banks led by JPMorgan Chase Bank and Credit Suisse Funding that completed the bank financing for the company’s recently announced acquisition of DJO Global. Consummation of the acquisition is expected in the first quarter of 2019.

Colfax completed “this important element of the DJO acquisition financing with attractive terms,” said Christopher Hix, Colfax senior vice president and chief financial officer. “The company is well-supported by a global bank group aligned with our portfolio transformation strategy. The terms and structure of this financing are consistent with our near-term plans to delever, and our longer-term objective to achieve investment grade credit ratings.”

The new credit agreement consists of a $1.3 billion revolving credit facility, a $1.225 billion Term A-1 loan which matures in five years, and a $0.5 billion Term A-2 loan, which matures in two years. The funds available from the new credit agreement will be used to refinance the company’s existing credit agreement, and to fund a portion of the consideration and fees payable by the company in connection with the acquisition of DJO.