HARVEY, Ill. — Atkore International Group Inc. announced the closing of the previously announced refinancing of its existing $411 million First Lien Term Loan Facility and $231 million Second Lien Term Loan Facility with an amended and restated $500 million New Term Loan Facility maturing in December 2023. The Company also amended its asset-based credit facility to, among other things, (i) extend the maturity to December 2021 and (ii) decrease the interest rate margins applicable to loans under the asset-based credit facility.
The Company used the borrowings under the New Term Loan Facility, together with approximately $155 million of available cash to prepay in full all loans outstanding under the existing First Lien Term Loan Facility the Second Lien Term Loan Facility, and to pay related fees and expenses, including accrued and unpaid interest in respect of the original two loans.
As a result of the proposed refinancing, the Company expects to reduce its annual cash interest expense by approximately $16.0 million based on current LIBOR rates.
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