Hubbell closes $500 million facility, $250 million accordion feature

By Aleesia Forni

Columbus, Ohio, Oct. 20 - Hubbell Inc. and its subsidiaries, Hubbell Cayman Ltd. and Hubbell Investments Ltd., entered into a $500 million five-year credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The facility will bear interest at a range of Libor plus 46 basis points to 97.5 bps, and facility fees range from 4 bps to 15 bps, based on the company's debt rating.

Under the terms of the agreement, the facility may be increased to $750 million and includes a $50 million sublimit for letters of credit and swingline borrowings.

Proceeds may be used for general corporate purposes, including support for issuance of commercial paper.

The agreement replaces the Shelton, Conn.-based company's existing $350 million five-year facility dated October 2007.

The company must maintain a debt to total capitalization ratio of 55%.

For the new facility, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and HSBC Bank USA NA are the joint lead arrangers and joint bookrunners.

JPMorgan Chase Bank NA is administrative agent.

Wells Fargo Bank NA and HSBC Bank USA NA serve as syndication agents.

Bank of America NA and U.S. Bank NA are documentation agents.

Hubbell is a manufacturer of electrical and electronic products.

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