Sensus Metering amends credit agreement to extend loan maturities

By Jennifer Chiou

New York, July 24 - Sensus Metering Systems Ltd. entered into the third amendment to its credit agreement to extend the maturity of revolver commitments and term loans, according to a 10-Q filed with the Securities and Exchange Commission.

The company obtained extensions for the maturity of certain term loans by providing for about $132 million of new tranche B-3 term loans with a maturity date of June 3, 2013. The new tranche was deemed to convert a like amount of existing tranche B-1 term loans that had a maturity date of Dec. 17, 2010.

In addition, the amendment increases the U.S. letter-of-credit availability to $50 million from $20 million and modifies certain financial covenants to improve financial flexibility.

Furthermore, the amendment extends the maturity date of Sensus USA Inc.'s $70 million of revolving loan capacity to Dec. 17, 2012 from Dec. 17, 2009.

Sensus added that the amendment provides for an additional $35 million in new tranche B-3 term loans.

Changes also provide for a Libor floor of 2.5% for the tranche B-3 term loans and revolving loans as well as an applicable margin above adjusted Libor of 450 basis points, which includes, in the case of the revolving loans, a facility fee of 100 bps.

The pricing for the about $27 million in tranche B-1 term loans that were not extended will remain at Libor plus 200 bps.

The company announced plans for the modifications in an 8-K on June 22.

Sensus is a Raleigh, N.C.-based technology and communications company providing data collection and metering services for water, gas, electric and heat utilities.

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