Invacare names new leader, secures new credit facility
ELYRIA, Ohio – After a six-month search, Invacare has named an exec with turnaround experience as its new president and CEO.
Matthew Monaghan, 47, currently the senior vice president and general manager of the Global Hips division at Zimmer, a manufacturer of orthopedic products and instruments, will take the helm at Invacare on April 1.
“In addition to his medical device background, he has proven turnaround experience, which will be critical to Invacare as it works through its short-term challenges,” stated Dr. C. Martin Harris, interim chairman of Invacare’s board of directors, in a press release.
Monaghan’s employment agreement with Invacare includes a five-year term and an initial base salary of $750,000 per year, according to a Form 8-K filed with the Securities and Exchange Commission.
As the head of Zimmer’s Global Hips division, a $1.3 billion business, Monaghan oversees product development, engineering, clinical studies, quality, regulatory affairs and marketing functions.
Prior to joining Zimmer in 2009, Monaghan logged eight years as an executive at two private equity firms, Texas Pacific Group and Cerberus Capital, where he led operational improvements for portfolio companies. Among his achievements: carving out a global medical device business from Baxter Healthcare, making significant improvements at a U.S. personal insurance business and running a consumer durable good business spun off from Newell-Rubbermaid.
Monaghan also spent 13 years in aerospace manufacturing and engineering at General Electric.
Other components of Monaghan’s agreement with Invacare: participation in the company’s executive incentive bonus plan with an initial, annual bonus target opportunity of 100% of his base salary; participation in the company’s long term incentive plan with an initial, annual equity grant with a value of $1.4 million as of the April 1 grant date; and an additional incentive award of service-based restricted shares with a value of $1 million as of the April 1 grant date, which will vest ratably on an annual basis over three years.
Rob Gudbranson, who has been acting as interim president and CEO since the departure of Gerald Blouch in July, will stay on as senior vice president and chief financial officer. His base salary will be set at $475,000 per year with an additional grant of service-based restricted shares with a value of $375,000 as of the April 1 grant date, according to the Form 8-K. The shares will vest 100% at the end of a three-year period on May 15, 2018.
Invacare secures new credit facility
ELYRIA, Ohio – Invacare has secured a new revolving credit and security agreement, establishing a $100 million asset-based lending senior secured credit facility, the company announced Jan. 16.
“Under the new credit facility, the company will not have the financial covenant limitations, such as the debt leverage covenant, which was in the previous credit agreement,” stated Rob Gudbranson, interim president and CEO, and senior vice president and CFO, in a press release. “We appreciate the support of our bank group in negotiating this new facility.”
The new credit facility, which matures January 2018, replaces Invacare’s prior senior secured credit facility, which was set to mature October 2015.
The borrowing availability under the new credit facility is determined by the value of Invacare’s eligible accounts receivable, inventory, and machinery and equipment assets in the United States and Canada, up to a maximum aggregate borrowing amount of $100 million.
Invacare’s preliminary aggregate borrowing base under the new credit facility is about $76 million, which is further limited by a number of provisions.