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Columbus McKinnon wraps revolver at upsized amount of $100 million
By Sara Rosenberg
New York, Jan. 24 – Columbus McKinnon Corp. lifted its five-year revolving credit facility to $100 million from $75 million, according to a market source.
Pricing on the revolver wrapped in line with talk at Libor plus 250 basis points with no Libor floor, a 40 bps undrawn fee and an original issue discount of 99.5.
The company’s $545 million credit facility (Ba3/B+) also includes a $445 million seven-year covenant-light first-lien term loan B priced at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99.5.
The term loan has 101 soft call protection for one year.
As previously reported, during syndication, pricing on the term loan was reduced from talk of Libor plus 325 bps to 350 bps and the discount was tightened from 99.
J.P. Morgan Securities LLC is the lead arranger and bookrunner on the deal.
Proceeds will be used to help fund the acquisition of Stahl CraneSystems from Konecranes plc for €224 million with an earn-out potential of up to €230 million if certain earnings goals are met for calendar year 2016 and to refinance existing bank debt.
Other funds for the transaction will come from proceeds from the issuance of common stock in a private placement and existing cash.
Pro forma net debt to adjusted EBITDA is 3.6 times.
Closing is anticipated on or about Jan. 31 as all conditions to the acquisition have already been met.
Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of material handling products, technologies and services. Stahl is a Germany-based manufacturer of explosion-protected hoists and crane components.
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