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Hasbro amends borrowing facility, bringing size to $700 million
By Jennifer Chiou
New York, Oct. 26 - Hasbro, Inc. and subsidiary Hasbro SA on Oct. 25 entered into an amended and restated revolving credit agreement, resulting in an increased borrowing facility of $700 million, according to an 8-K filing with the Securities and Exchange Commission.
The capacity was lifted from $500 million.
In addition, the maturity was extended to Oct. 25, 2017.
Bank of America, NA acted as administrative agent, swingline lender, letter of credit issuer and a lender, while Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup Global Markets Inc., RBS Citizens, NA and SunTrust Robinson Humphrey, Inc. were the joint lead arrangers and bookrunners.
Interest accrues at Libor plus a margin, which depends on the more favorable of the company's debt rating and the ratio of the company's consolidated total funded debt to consolidated EBITDA.
Based on Hasbro's current debt ratings of BBB+ from Standard & Poor's, Baa2 from Moody's Investors Service and BBB+ from Fitch Ratings, the current rate is Libor plus 150 basis points under the amended agreement.
There is an unused fee of 15 bps to 22.5 bps.
The agreement provides for swingline borrowings of up to $50 million and letters of credit in aggregate combined amounts of up to $100 million.
The company has to maintain a consolidated interest coverage ratio of no less than 3.50:1.00 as of the end of any fiscal quarter. It also must keep a consolidated total funded debt to consolidated EBITDA ratio of no more than 3.00:1.00 at the end of the first, second and fourth fiscal quarters, or 3.50:1.00 at the end of the third fiscal quarter.
The game and toy company is based in Pawtucket, R.I.
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