Hasbro lifts revolver commitments to $1.1 billion, extends to 2023

By Sarah Lizee

Olympia, Wash., Nov. 29 – Hasbro, Inc. and subsidiary Hasbro SA entered into an amended and restated revolving credit agreement on Monday, increasing maximum borrowing commitments to $1.1 billion, according to an 8-K filing with the Securities and Exchange Commission.

There is a potential additional incremental commitment increase of up to $500 million.

The amendment also extends the maturity to Nov. 26, 2023 from March 30, 2020.

Some fees payable under the facility were also reduced, the filing noted.

Interest is initially Libor plus 112.5 basis points, based on the company’s current debt ratings. The margin over Libor will range from 87.5 bps to 150 bps.

The commitment fee is initially 12.5 bps and will range from 7 bps to 17.5 bps, also depending on ratings.

The facility provides for swingline borrowings of up to $50 million and the issuance of letters of credit in individual amounts of up to $18.75 million and total combined amounts of up to $75 million.

The agreement requires the company to maintain a consolidated interest coverage ratio of no less than 3 to 1 as of the end of any fiscal quarter and a consolidated total leverage ratio of no more than 3.5 to 1 at the end of the first, second and fourth fiscal quarters, or 4 to 1 at the end of the third fiscal quarter and for the five consecutive fiscal quarters following some acquisitions.

Merrill Lynch, Pierce, Fenner & Smith Inc., Citibank, NA, Citizens Bank, NA and JPMorgan Chase Bank, NA are joint lead arrangers and bookrunners. Bank of America, NA is the administrative agent, swingline lender and a letter-of-credit issuer. Citibank, Citizens Bank and JPMorgan are co-syndication agents.

The toy and game company is based in Pawtucket, R.I.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.