Crane gets $1.5 billion term loan commitment to finance Circor buyout

By Marisa Wong

Morgantown, W.Va., June 17 – Crane Co. entered into a commitment letter on Monday with Wells Fargo Securities, LLC as lead arranger and Wells Fargo Bank, NA as administrative agent for an up to $1.5 billion 364-day term loan, according to a term sheet.

Crane will use the loan along with available cash on hand, including amounts that may be drawn under its existing credit agreement, to finance its acquisition of Circor International, Inc. Crane announced on Monday that it has begun a tender offer to acquire all of Circor’s outstanding shares for $45.00 per share in cash.

The term loan will be available in a single draw beginning on the closing date of the acquisition.

Borrowings will bear interest at Libor plus 87.5 basis points to 175 bps, depending on ratings.

The commitment fee will range from 7 bps to 22.5 bps, also based on ratings.

The credit agreement will include a financial covenant requiring the company to maintain a leverage ratio of not more than 0.65 to 1.00.

Stamford, Conn.-based Crane is a manufacturer of highly engineered industrial products. Burlington, Mass.-based Circor designs, manufactures and markets differentiated technology products and sub-systems for markets, including aerospace and defense, industrials and oil and gas.

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