Hexcel enters five-year $1 billion revolver at Libor plus 100 bps

By Wendy Van Sickle

Columbus, Ohio, June 20 – Hexcel Corp. entered into a new five-year $1 billion senior unsecured revolving credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings initially bear interest at Libor plus a margin of 100 basis points. The margin may range from 87.5 bps to 150 bps, depending on whichever is more favorable of Hexcel’s credit ratings or its leverage ratio.

The fee on unused commitments is initially 12.5 bps and may range from 10 bps to 22.5 bps, depending on the more favorable of Hexcel’s credit ratings or leverage ratio.

The company may request to increase revolving commitments by or add term loans of up to $500 million.

Citizens Bank, NA, BofA Securities, Inc., TD Bank, NA and Wells Fargo Securities, LLC are the bookrunners and lead arrangers. Bank of America, NA, TD Bank NA and Wells Fargo Bank, NA are the syndication agents. Goldman Sachs Bank USA, HSBC Bank USA, NA, JPMorgan Chase Bank, NA, PNC Bank, NA, SunTrust Bank and U.S. Bank NA are the co-documentation agents.

Citizens Bank is the administrative agent.

Hexcel must maintain a minimum interest coverage ratio and a maximum leverage ratio.

At closing, Hexcel borrowed $408 million, which it used to repay and terminate its existing credit agreement with Citizens Bank as administrative agent. That credit agreement was scheduled to expire on June 9, 2021.

The new credit agreement is due to mature on June 20, 2024.

Hexcel is a composites company based in Stamford, Conn.

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