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Kaman wraps $225 million three-year revolver, $50 million term loan
By Jennifer Chiou
New York, Sept. 18 - Kaman Corp. announced the closing of a new $225 million three-year revolving credit facility via co-administrative agents Bank of America and the Bank of Nova Scotia.
Bank of America was the administrator and collateral agent with RBS Citizens, NA as syndication agent. Other lenders are JPMorgan Chase, KeyBanc, TD Bank, BB&T, Fifth Third, Webster Bank, Northern Trust, US Bank, Sovereign Bank and UBS, according to a company news release.
Also on Friday, the company entered into an amended and restated credit agreement for a $50 million term loan expiring on Oct. 29, 2012.
The amended term loan includes quarterly payments of principal at a rate of 2.5%, with 62.5% of the initial amount payable in the final quarter. The term loan may be increased up to an additional $50 million, according to an 8-K filing with the Securities and Exchange Commission.
The new revolver replaces Kaman's $200 million five-year revolver. It includes an accordion feature that allows the company to increase the total amount available to up to $300 million with additional commitments from lenders.
Borrowings under the facility will bear interest at Libor plus 350 basis points.
The facility includes a collateralized security agreement and carries a standard financial covenant package, Kaman said in the release. The collateral agent is granted a lien on first-priority security interests in substantially all of the company's assets.
"Upsizing our revolver in the current environment is a significant accomplishment, and we were encouraged by the strong interest from the banking community," Kaman senior vice president and chief financial officer William C. Denninger noted in the release.
"We brought in six new lenders and were well over-subscribed."
Kaman is an aerospace, industrial distribution and music company based in Bloomfield, Conn.
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