Graybar Electric entered into an agreement on September 22 that will let the company issue $100 million in senior debt to Metropolitan Life Insurance Co. and MetLife Investment Advisors LLC, according to a regulatory filing.
According to the St. Louis Business Journal, Graybar said it entered into an uncommitted $100 million private placement shelf agreement with the MetLife companies. Officials said the facility is expected to allow Graybar to issue senior promissory notes to MetLife or its affiliates at fixed or floating rates to be agreed upon when issued during a three-year period ending in September 2019.
Graybar said in the filing with the Securities and Exchange Commission that any proceeds from the facility will be used for general corporate purposes, including working capital and capital expenditures, to refinance existing indebtedness and/or to fund possible acquisitions.
No notes have been issued under the MetLife agreement, Graybar said, and it ranks equally with the company’s existing credit agreement with Bank of America NA and other lenders and its private shelf agreement dated Sept. 22, 2014, with Prudential Investment Management Inc.
Graybar will select the term of each note issued under the MetLife shelf facility, officials said, not to exceed 12 years (10 years for floating-rate notes).
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