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Hasbro reduces fees, extends term of $700 million revolver to 2020
By Toni Weeks
San Luis Obispo, Calif., April 2 – Hasbro, Inc. and subsidiary Hasbro SA entered into a second amended and restated $700 million revolving credit agreement on March 30, extending the term to March 30, 2020 from Oct. 25, 2017, according to an 8-K filing with the Securities and Exchange Commission.
The amendment provides for swingline borrowings of up to $50 million and the issuance of letters of credit in total combined amounts of up to $10 million.
Interest currently accrues at Libor plus 112.5 basis points. The exact margin over Libor may range from 87.5 bps to 175 bps and is based on the more favorable of the company’s debt rating and its ratio of total funded debt to consolidated EBITDA.
According to the filing, the amended agreement reduces certain fees payable under the facility. The company now pays a commitment fee of 8 bps to 25 bps and a fee of 75 bps to 125 bps for commercial letters of credit and 87.5 bps to 175 bps for standby letters of credit. These are also based on the more favorable of the company’s debt rating and its ratio of total funded debt to consolidated EBITDA.
Under the agreement, the company must maintain a consolidated interest coverage ratio of at least 3.5 times at the end of fiscal quarter. It must also maintain a consolidated total funded debt to consolidated EBITDA of no more than 3.0 times at the end of the first, second and fourth fiscal quarters and 3.5 times at the end of the third fiscal quarter.
Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer. BofA Merrill Lynch, Citigroup Global Markets Inc., Citizens Bank, NA and SunTrust Robinson Humphrey, Inc. are joint lead arrangers and bookrunners. Citizens, NA, Citizens Bank and SunTrust Bank are co-syndication agents.
The toy and game company is based in Pawtucket, R.I.
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