Graco gets $500 million five-year revolver at Libor plus 112.5 bps

By Angela McDaniels

Tacoma, Wash., July 1 – Graco Inc. entered into an amended and restated credit agreement on Thursday that provides for a $500 million multicurrency revolving credit facility due June 26, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The amended size represents an increase of $50 million over the existing facility.

There is a $150 million accordion feature that may be exercised through an increase in the revolving commitments or by the addition of term loans.

Outstanding loans in currencies other than dollars cannot exceed $200 million.

The initial pricing is Libor plus 112.5 basis points for the interest rate and 17.5 bps for the facility fee.

The margin over Libor ranges from 100 bps to 187.5 bps – down from 100 bps to 200 bps under the prior credit agreement – depending on the company’s cash flow leverage ratio.

The facility fee ranges from 15 bps to 30 bps. Under the prior credit agreement, it was 15 bps to 40 bps.

The restated credit agreement requires the company to maintain a cash flow leverage ratio of not more than 3.25 to 1.00 and an interest coverage ratio of not less than 3.00 to 1.00, consistent with the prior credit agreement.

U.S. Bank NA is the administrative agent.

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

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