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Columbus McKinnon to up revolver to $175 million, eyes term B market
By Sara Rosenberg
New York, April 26 – Columbus McKinnon Corp. plans on expanding its existing revolving credit facility to $175 million from $100 million to help fund its acquisition of montratec GmbH, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.
However, the company intends to upsize its term loan B to pay down revolver borrowings in the future, with timing based on market conditions.
“Will monitor term loan B marketplace and refinance when appropriate to return to covenant-lite structure,” the company said in a presentation.
Under the agreement, montratec is being bought for €101.25 million, subject to certain customary adjustments.
Pro forma combined net debt leverage ratio will be around 2.7x at closing.
“Our measurable cash generation, flexible balance sheet and strong liquidity enable us to finance this bolt-on acquisition at a reasonable cost in today’s credit environment. Importantly, post-acquisition our leverage ratio is comfortably below 3.0x, and we expect we will demonstrate yet again our ability to quickly de-lever to our targeted leverage ratio,” said Greg Rustowicz, executive vice president and chief financial officer of Columbus McKinnon, in a news release.
Closing is expected by May 31, subject to customary conditions.
Columbus McKinnon is a Buffalo, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions for material handling. montratec is a Germany-based automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes.
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