| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Gardner Denver, Inc. > News item |
Gardner Denver draws entire term loan facility, most of revolver to repay debt, acquire CompAir
By Angela McDaniels
Tacoma, Wash., Oct. 21 - Gardner Denver, Inc. said it borrowed the entirety of its $180 million and €120 million term loans on Friday, £40 million of its $310 million revolver on Thursday and $200 million of the revolver on Oct. 15.
As previously reported, the company closed on the roughly $670 million five-year credit facility on Sept. 19. J.P. Morgan Securities Inc. was lead arranger and bookrunner for the syndicate of 16 lenders.
Proceeds were used to replace the company's former revolver and term loans and to help fund the acquisition of CompAir Holdings Ltd., which closed Monday. The total transaction value was £200.6 million, net of cash acquired, and was paid through a combination of cash, the repayment of some debt and the assumption of CompAir's other net debt.
Interest is initially Libor plus 250 basis points for the term loans and Libor plus 210 bps for the revolver, according to an 8-K filing with the Securities and Exchange Commission.
Depending on the company's consolidated total debt-to-consolidated adjusted EBITDA ratio, interest will range from Libor plus 150 bps to Libor plus 300 bps for the term loans, from Libor plus 120 bps to Libor plus 250 bps for the revolver and from Libor plus 25 bps to Libor plus 175 bps for floating-rate loans.
The revolver has a $200 million accordion feature.
Financial covenants include a maximum total leverage ratio test and a minimum interest coverage ratio test.
The credit facility is guaranteed by the company's domestic subsidiaries and secured by a pledge of the capital stock of each of the company's material domestic subsidiaries as well as 65% of the capital stock of each of the company's first-tier material foreign subsidiaries.
Gardner Denver is a Quincy, Ill., manufacturer of reciprocating, rotary and vane compressors, liquid ring pumps and blowers. CompAir is a Redditch, England, manufacturer of compressors.
© 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.