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GP Strategies obtains $200 million five-year revolving loan facility
By Sarah Lizee
Olympia, Wash., Dec. 6 – GP Strategies Corp. entered into a credit agreement with PNC Bank, NA as administrative agent on Nov. 30 that provides for a $200 million revolving loan facility, according to an 8-K filing with the Securities and Exchange Commission.
PNC Capital Markets LLC and Wells Fargo Securities, LLC are joint lead arrangers.
The revolver matures Nov. 29, 2023.
There is a $20 million sublimit for foreign borrowings, a $20 million letter-of-credit sublimit and a swingline loan credit sublimit of $20 million.
An accordion feature allows the company to request increases in commitments by up to an additional $100 million.
Borrowings bear interest at Libor plus 125 basis points to 225 bps, based on leverage.
Financial covenants include a maximum leverage ratio of 3.25 to 1 for fiscal quarters ending through June 30, 2019 and 3 to 1 for fiscal quarters ending Sept. 30, 2019 and onwards, and a minimum interest expense coverage ratio of 3 to 1.
The new credit agreement replaced the company’s prior credit agreement with Wells Fargo dated Dec. 21, 2016.
Proceeds were used, in part, to repay in full all outstanding borrowings under the original credit agreement, and additional proceeds are expected to be used for working capital and other general corporate purposes, including the issuance of letters of credit and permitted acquisitions.
As of Nov. 30, the company had $128 million of borrowings outstanding under the revolver and cash balances totaling $25 million.
Based in Columbia, Md., GP Strategies provides sales and technical training, e-learning solutions, management consulting and engineering services.
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