Graco amends and extends $500 million revolver with accordion

Chicago, March 26 – Graco Inc. entered into an amended and restated credit agreement on Thursday for a $500 million revolver with U.S. Bank NA listed as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amended facility now matures March 25, 2026, pushed back from Dec. 15, 2021 with the option for two one-year extensions subject to lender consent.

There is also a $250 million accordion feature.

Loans not in U.S. dollars cannot exceed $200 million.

Libor-based loans will bear interest at Libor plus a margin ranging from 100 basis point to 175 bps, depending on the company’s cash flow leverage ratio. The amended agreement has Libor replacement provisions.

The commitment fee on unused amounts ranges from 12.5 bps to 25 bps, also depending on leverage.

The initial rate at the time of signing is Libor plus 100 bps with a 0% Libor floor. The initial commitment fee was 12.5 bps.

The restated agreement requires the company to maintain a cash flow leverage ratio of not more than 3.5x unless there has been a significant acquisition, in which case the interest coverage ratio can be 4x for the four fiscal quarter periods beginning with the quarter in which the acquisition occurs.

JPMorgan Chase Bank, NA is the syndication agent.

Wells Fargo Bank, NA, Bank of America, NA and PNC Bank, NA are the co-documentation agents.

U.S. Bank NA and JPMorgan Chase Bank, NA worked as joint lead arrangers and joint bookrunners.

Graco is a Minneapolis-based provider of fluid-management technology.

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