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| BSX > SEC Filings for BSX > Form 8-K on 26-Feb-2009 | All Recent SEC Filings |
26-Feb-2009
Entry into a Material Definitive Agreement, Results of Operations and Fina
On February 20, 2009, we amended our term loan and revolving credit facility agreement to increase flexibility under our financial covenants and to support our previously announced plant network optimization and other expense reduction initiatives. The amendment provides for exclusions, through the credit agreement maturity in April 2011, from the defined calculation of consolidated EBITDA including up to $346 million in restructuring charges, any litigation-related charges and credits until these items are paid or received, up to $1.137 billion of any cash payments for litigation settlements or damage awards (net of any litigation payments received), and all cash payments for litigation settlements (net of litigation payments received) related to amounts that were recorded in our financial statements before January 1, 2009. At the same time, we prepaid $500 million of our term loan and reduced our revolving credit facility by $250 million. As a result, our next debt maturity of $325 million is due in April 2010. In addition, the agreement provides for an increase in interest rates on our term loan borrowings from LIBOR plus 1.00 percent to LIBOR plus 1.75 percent at current credit ratings and increases the fee on unused facilities from 0.175 percent to 0.500 percent.
A copy of the amendment is filed herewith as Exhibit 10.1.
Today we announced updated financial results for the fourth quarter ended December 31, 2008. Subsequent to the release of earnings on January 28, 2009, we accrued for a patent litigation settlement and, as expected, finalized a previously announced goodwill impairment charge. In accordance with U.S. Generally Accepted Accounting Principles, these events are required to be recorded in the fourth quarter as they occurred after the January 28, 2009 earnings release and before the filing of the Company's Annual Report on Form 10-K.
The patent litigation settlement resulted in a pre-tax charge of $23 million ($18 million after-tax). The finalization of the goodwill impairment charge reflected a $54 million credit (on both a pre-tax and after-tax basis) and resulted in a final charge of $2.613 billion compared to the previously reported charge of $2.667 billion.
A copy of the press release is attached hereto as Exhibit 99.1.
Exhibit No. Description
10.1 Form of Second Amendment to Credit Agreement.
99.1 Press Release issued by Boston Scientific Corporation dated February 26, 2009.
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