Donaldson enters into replacement $250 million unsecured revolver

By Jennifer Chiou

New York, Dec. 13 - Donaldson Co., Inc. on Dec. 7 entered into a $250 million unsecured revolving credit facility with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The Minneapolis-based developer and manufacturer of filtration and exhaust systems may increase borrowings to up to $400 million under the five-year facility.

The agreement also includes up to $25 million for letters of credit.

The new revolver replaces the company's prior revolving credit facility, which would have expired on April 2, 2013.

Borrowings will bear interest at Libor plus 100 basis points. The company is required to maintain a consolidated interest coverage ratio of no less than 3.5 and an adjusted debt-to-EBITDA ratio of no more than 3.0.

As of Dec. 7, the amount outstanding under the revolver was $65 million.

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