Hexcel $700 million revolver’s interest initially Libor plus 125 bps

By Wendy Van Sickle

Columbus, Ohio, June 14 – Hexcel Corp.’s amended and restated $700 million senior revolving credit facility initially accrues interest at Libor plus 125 basis points, according to an 8-K filing with the Securities and Exchange Commission.

The interest margin above Libor can vary from 87.5 bps to 187.5 bps, depending on Hexcel’s consolidated leverage ratio. The commitment fee ranges from 12.5 bps to 30 bps and is initially 17.5 bps.

As previously reported, the company amended and restated the credit agreement governing the revolver on Thursday, extending its maturity to June 2021 from September 2019.

Wholly owned subsidiary Hexcel Holdings Luxembourg Sarl may borrow up to $200 million under the agreement. Up to $40 million is available for letters of credit.

Citizens Bank, NA is the administrative agent and is joined as a lead joint book manager and joint lead arranger by Bank of America Merrill Lynch and Wells Fargo Securities, LLC. Bank of America and Wells Fargo Bank, NA are the syndication agents. Sumitomo Mitsui Banking Corp., SunTrust Bank, TD Bank, NA and U.S. Bank NA are the documentation agents.

The credit agreement has financial covenants that require Hexcel to maintain a minimum interest coverage ratio and a maximum consolidated leverage ratio. The company previously reported that the covenants are less restrictive than those of its former revolver and also that interest costs were modestly reduced under the restated credit facility.

Hexcel is a composites company based in Stamford, Conn.

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