Plexus increases revolver to $300 million, extends facility to 2021

By Marisa Wong

Morgantown, W.Va., July 11 – Plexus Corp. entered into a second amendment to its credit agreement dated May 15, 2012 to increase the maximum commitment under its senior unsecured revolving credit facility to $300 million from $265 million.

As of July 5, the amendment date, the balance under the credit facility was $75 million, according to an 8-K filing with the Securities and Exchange Commission.

The facility may potentially be increased by up to $200 million to a maximum of $500 million.

Borrowings under the amended facility bear interest at Libor plus an applicable margin based on the company’s consolidated total debt to consolidated EBITDA ratio. At the company’s current leverage ratio, the interest rate margin would be 137.5 basis points.

In addition, the amendment extends the termination date of the credit facility to July 5, 2021 from May 15, 2019.

The amendment also modifies some definitions and other provisions; in particular, the amendment expressly permits the company or any of its subsidiaries to enter into factoring and asset securitization transactions in amounts not exceeding specified limits.

Also on July 5, the company and the holders of its $175 million 5.2% senior notes due June 15, 2018 amended the note purchase agreement dated April 21, 2011. Among other changes, the amendment now permits some financing and purchase transactions and aligns the financial covenants in the note purchase agreement with those of the amended credit agreement.

U.S. Bank NA and PNC Capital Markets, LLC are the joint lead arrangers and joint bookrunners for the amended revolver. U.S. Bank is the administrative agent with PNC Bank, NA as syndication agent and MUFG, Bank of America, NA, BMO Harris Bank NA, HSBC Bank USA, NA, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA as co-documentation agents.

Plexus is a Neenah, Wis., electronic manufacturing services provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.