Cooper Tire lifts revolver, gets $200 million delayed-draw term loan

By Sarah Lizee

Olympia, Wash., June 28 – Cooper Tire & Rubber Co. amended its credit agreement on Thursday with JPMorgan Chase Bank, NA as administrative agent, increasing the revolver to $500 million and extending it to June 27, 2024, as well as adding a $200 million delayed-draw term loan due June 27, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also lifted the incremental facility to $300 million plus an additional amount such that the secured net leverage ratio would not exceed 1.75 to 1.00.

Some negative covenants were modified to permit additional debt, investments and liens, and the basket for permitted dividends was raised.

Interest on all loans under the credit agreement is Libor plus 150 basis points to 200 bps, depending on the leverage ratio.

The commitment fee ranges from 20 bps to 35 bps.

As of Thursday, the interest rate was Libor plus 150 bps and the commitment fee was 20 bps.

Cooper Tire is a Findlay, Ohio-based manufacturer of replacement tires.

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