Kadant enters $200 million five-year restated revolving facility

By Marisa Wong

Morgantown, W.Va., March 7 – Kadant Inc. entered into a $200 million five-year amended and restated unsecured revolving credit facility on March 1, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The credit agreement includes an uncommitted unsecured incremental borrowing facility of up to an additional $100 million.

The facility was arranged by Citizens Bank, NA and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners; Wells Fargo Securities as syndication agent; Citizens Bank as administrative agent; and HSBC Bank USA, NA and U.S. Bank, NA as documentation agents.

The facility matures on March 1, 2022.

Interest is equal to Libor plus 100 basis points to 200 bps, subject to a 0% Libor floor. The applicable margin based on the ratio of the company’s total debt to EBITDA.

The credit agreement contains financial covenants requiring the company to comply with a maximum consolidated leverage ratio of 3.5 to 1 and a minimum consolidated interest charge coverage ratio of 3 to 1.

At closing, Kadant borrowed $42 million and €26.3 million under the credit agreement and used the proceeds to pay off the outstanding debt under its existing credit facility dated Aug. 3, 2012.

Kadant is a Westford, Mass.-based supplier to the pulp and paper industry.

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