Advanced Medical Optics amends loan terms amid Abbott takeover

Advanced Medical Optics Inc., the manufacturer of eye-surgery devices that's being purchased by Abbott Laboratories, said lenders amended its borrowing terms to allow the company to hold more debt without violating loan covenants.

The new agreement increases the maximum allowable consolidated leverage ratio until March, 27, the Santa Ana, California-based company said in a Feb. 18 filing with the U.S. Securities and Exchange Commission.

The offer was sought "as a precautionary measure to maximize its flexibility while the tender offer initiated by Abbot is pending," the filing said.

On Jan. 12, Abbott Laboratories said it would buy Advanced Medical Optics, giving the drugmaker a stake in the eye care market. Abbott valued the deal at about $2.8 billion, including assumption of Advanced Medical Optics debt.