Columbus McKinnon releases details on proposed credit facilities

By Sara Rosenberg

New York, March 2 – Columbus McKinnon Corp. filed in an 8-K with the Securities and Exchange Commission on Tuesday the commitment letter for its proposed up to $710 million of credit facilities.

Based on the commitment letter, pricing on the $60 million five-year revolver is expected at Libor plus 325 basis points with a 0.75% Libor floor and a 55 bps commitment fee. Following delivery of financial statements for the first full fiscal quarter post-closing date, pricing can range from Libor plus 200 bps to 325 bps and the commitment fee can range from 30 bps to 55 bps, based on total leverage.

The letter outlined pricing on the up to $650 million seven-year covenant-lite first-lien term loan at Libor plus 425 bps with a 0.75% Libor floor.

The term loan is expected to have 101 soft call protection for six months and amortization of 1% per annum.

JPMorgan Chase Bank is the sole lead arranger and bookrunner on the deal.

Proceeds will be used to help fund the $485 million acquisition of Dorner Manufacturing Corp. from EQT and to refinance an existing term loan B.

Other funds for the transaction will come from about $120 million of existing cash.

The company plans to issue about $150 million of equity to de-lever post close and is targeting net leverage of 3.75x to 4.0x pro forma for the equity offering.

Closing is anticipated early in the company’s first quarter of fiscal 2022, subject to usual closing conditions and regulatory requirements.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions, products, technologies and services for material handling. Dorner Manufacturing is a Hartland, Wis.-based automation solutions company.

© 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.