Kadant increases revolver to $400 million, extends maturity to 2023

Chicago, Dec. 19 – Kadant Inc. increased its revolving credit facility to $400 million from $300 million and its uncommitted incremental borrowing facility to $150 million from $100 million and extended the maturity date to Dec. 14, 2023, the company announced in a press release on Wednesday.

The company separately entered into an uncommitted, unsecured note purchase and private shelf agreement with Prudential Capital Group, which allows Kadant over the next three years to borrow up to $125 million with long-term fixed interest rates, as determined under the note purchase agreement.

Upon the signing of the note purchase agreement, the company borrowed $10 million from the $125 million facility.

Process will be used as additional capital to support the company’s growth strategies.

“As a result of these transactions, we now have even greater liquidity and flexibility to deploy capital opportunistically to further enhance our position in the marketplace,” Michael McKenney, executive vice president and chief financial officer of Kadant, said in the news release. “We look forward to continuing our relationships with our lenders as Kadant continues to grow.”

Citizens Bank, NA, Wells Fargo Securities, LLC and JPMorgan Chase Bank, NA were the joint lead arrangers, with Wells Fargo Bank, NA and JPMorgan Chase as syndication agents and Citizens Bank as administrative agent.

Kadant makes components and engineered systems used in process industries and is based in Westford, Mass.

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