AGCO increases revolver size to $600 million on strong demand

By Sara Rosenberg

New York, Nov. 3 - AGCO Corp. upsized its revolving credit facility to $600 million from $500 million and left the term loan A at $400 million, according to a market source.

Pricing on the now $1 billion five-year unsecured credit facility, up from $900 million, still opens at Libor plus 150 basis points, with the revolver having a 25 bps commitment fee.

The facility has a leverage-based pricing grid, and although coupons across the grid are unchanged, the leverage break points have been amended downwards, the source said.

Recommitments were due at the end of the day Thursday.

Rabobank is the left lead bank on the deal, and J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Bank of Tokyo signed on as lead arrangers.

Proceeds will be used to help fund the acquisition of GSI Holdings Corp. from Centerbridge Partners LP for $940 million and to refinance existing credit lines.

Closing is expected before the end of the year, subject to regulatory approval.

AGCO is a Duluth, Ga.-based manufacturer and distributor of agricultural equipment. GSI is an Assumption, Ill.-based manufacturer of grain storage and protein production systems.

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