Altra Industrial draws down $100 million under $300 million revolver

By Sarah Lizee

Olympia, Wash., March 19 – Altra Industrial Motion Corp. drew down $100 million under its $300 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The borrowings were made for $50 million each on March 9 and March 16.

As of Tuesday, a total of $100 million was outstanding under the revolver.

Borrowings under the revolver are scheduled to mature on Sept. 30, 2023, and the company may repay amounts borrowed any time without penalty.

Borrowings will initially bear interest at Libor plus 200 basis points. The margin can vary based on the company’s senior secured net leverage ratio.

The company said it increased its borrowings as a precautionary action in order to increase its cash position and enhance its financial flexibility during this period of uncertainty in the global markets resulting from Covid-19.

The drawdown proceeds are currently being held on the company’s balance sheet and may be used for general corporate purposes.

The company could make further borrowings and had $195.6 million available to borrow under the revolver as of Tuesday, the filing noted.

Altra is a Braintree, Mass.-based designer, producer and marketer of a wide range of electromechanical power transmission and motion-control products.

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