MILWAUKEE — Actuant Corporation announced the completion of a new five-year $600 million senior credit facility, comprised of a $400 million revolving line of credit and a fully-drawn $200 million term loan.
Proceeds from the refinancing will be used to retire the existing $300 million term loan due May 2020, of which $200 million was outstanding at the end of the company’s second quarter. The new facility includes a reduction in pricing, expansion of the revolving credit facility from $300 to $400 million, and a March 2024 maturity date. Borrowing capacity and outstanding debt will not change as a result of this new agreement.
“The refinancing of the credit facility creates a longer-term capital structure with greater flexibility to support the company’s strategic plan, including the divestiture of the EC&S segment and continued disciplined focus on our capital allocation priorities,” said Rick Dillon, Actuant’s Executive Vice President and Chief Financial Officer. “We are pleased to have the strong support of our bank partners as we progress through our transformation into a pure-play premier industrial tools and services company.”
The new credit facility contains financial covenants that are consistent with the prior facility, with enhancements that improve overall liquidity. The facility provides the option for future expansion through a $300 million accordion on the revolver. The facility will bear interest initially at a rate of LIBOR + 1.625 bps.Tagged with Actuant