Leggett & Platt pays off remaining $280 million under term loan A

By Marisa Wong

Los Angeles, Aug. 31 – Leggett & Platt, Inc. paid off all of the remaining $280 million outstanding under its term loan A prior to its stated maturity date of Jan. 3, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The repayment is expected to reduce interest expense, reduce uncertainty associated with the discontinuation of Libor and optimize the company’s capital structure.

The company had made a one-time draw under the term loan A on Jan. 16, 2019 in the maximum amount of $500 million to help finance its acquisition of Elite Comfort Solutions, Inc.

The term loan A bore interest at 3%, or Libor plus a spread based on the company’s credit ratings.

The company previously made some optional prepayments of principal in immaterial amounts.

There were no penalties for early repayment under the term loan A.

As of the Aug. 31 payoff date, no borrowings were outstanding under the company’s existing $1.2 billion revolver, which is part of the same credit agreement dated Dec. 12, 2018 that covered the term loan A.

JPMorgan Chase Bank, NA is the administrative agent.

Leggett & Platt is a Carthage, Mo.-based manufacturer of residential furnishings, commercial components and industrial materials.

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