Hillenbrand expands via $600 million five-year multi-currency revolver

By Susanna Moon

Chicago, July 30 - Hillenbrand Inc. said it refinanced its loans with an expanded $600 million five-year multi-currency revolving facility with a $300 million accordion.

The facility also provides for swingline loans and letters of credit with sublimits.

Interest is equal to Libor plus a spread of 85 bps to 140 bps based on leverage. The initial rate is Libor plus 105 bps. The rate on commercial letters of credit is initially 78.75 bps and ranges from 63.75 bps to 105 bps. The facility fee is initially 20 bps and ranges from 15 bps to 35 bps.

Proceeds will be used for working capital and other general corporate purposes, including financing acquisitions.

The facility may be used by the company or its subsidiaries, and the debt may be denominated in dollars and some foreign currencies.

The credit facility matures in 2017 with an option to extend twice in one-year increments.

The debt under the facility is guaranteed by the company and some of its domestic subsidiaries.

The company entered into a credit agreement Friday with JPMorgan Chase Bank, NA as administrative agent and J.P. Morgan Securities LLC and RBS Citizens, NA as bookrunners and lead arrangers, according to an 8-K filing with the Securities and Exchange Commission.

RBS Citizens, NA is the syndication agent; Fifth Third Bank, PNC Bank, NA, U.S. Bank, NA and Wells Fargo Bank, NA are the co-documentation agents. HSBC Bank USA, NA, Regions Bank, Northern Trust Co. and Branch Banking & Trust Co. are also lenders.

The company's $400 million revolver was set to expire in early 2013, according to a company press release.

"This new credit facility provides us additional financial flexibility to support both our acquisition strategy and ongoing operations," Kenneth A. Camp, president and chief executive officer of Hillenbrand, said in the release.

"The enhanced features allow us to more efficiently provide capital to our growing international operations in their local currencies," he added.

Hillenbrand is a diversified industrial company based in Batesville, Ind., that makes and sells business-to-business products.

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