Boston Scientific Amends Credit Facility and Prepays $1 Billion on Loan

August 23, 2007

Boston Scientific announced it has amended its $2 billion revolving line of credit and $5 billion term loan agreement.

Among other items, the amendment extends a step-down in the maximum permitted leverage ratio — total debt divided by earnings before interest, taxes, depreciation and amortization (EBITDA). The amendment clarifies the definition of EBITDA to exclude up to $300 million of any restructuring charges incurred through June 30, 2009, and up to $500 million of any litigation charges — less any litigation income recorded — each year through June 30, 2009.

In connection with the amended agreement, Boston Scientific prepaid $1 billion of its term loan using $750 million from cash on hand and $250 million from a credit facility, resulting in a gross debt reduction of $750 million. The $1 billion prepays the company’s April 2008 term loan obligation of $650 million and reduces the $650 million April 2009 obligation by $350 million.