According to fresh reports, the interest rate on a Term B Loan Facility from Integer Holdings Corp (NYSE:GB) will now be lower. This was agreed upon after the completion of an amendment to the company’s senior secured credit facilities. The medical device outsources manufacturer has been on a rollercoaster with its stock performance for the last three months.
Records have it that it registered a constant return of 33.17% outpacing the 8.48% gain from Zacks Medical – Instruments subindustry’s classification. This is perhaps the reason why various institutional investors are adding or reducing their stakes in the company. For example, First Mercantile Trust Co made a new purchase of shares of Integer Holdings, which was worth $264,000.
But what is behind the scenes of the Amendment?
This is, of course, one of the smartest moves that the company has made. From LIBOR + 4.25% the appropriate interest rate margin of its Term B Loan goes to LIBOR + 3.50%. It is expected that this will bring down the annual interest expense to about $7 million enhancing financial flexibility for the company as a result of the increased operating cash flow.
Integer’s quarterly earnings results were surprising to analysts’ consensus estimates of $0.85 because they were at $0.87 earnings per share. The revenue for the quarter was at $359.59 million, which was over and above the analysts’ estimates of $351.32 million. Other news has it that Director William B. Summers, Jr. now owns 44,884 shares of the company’s stock after selling off 3,370 shares.
Insider Jennifer M. Bolt is also reported to have sold 1,000 shares of the stock at an average price of $37.55. It is worth noting that in the last ninety days total of 182,956 shares of company stock has been sold by insiders at a value of $6,788,314.
The company wears different hats with its operations
Integer Holdings is well known as a leading manufacturer of medical devices, which serve in the areas of orthopedics, cardiac, vascular, and neuromodulation among others. It also has some of the most sort after surgical and power solutions in the market. Meanwhile, Integer’s stock was trading at $30.93 a fall of $0.01 or 0.03%.
