Kaman gives details on $700 million restated revolver, term loan

By Marisa Wong

Madison, Wis., May 7 – Kaman Corp. disclosed details of its amended and restated credit facility in an 8-K filed Thursday with the Securities and Exchange Commission.

As previously announced, the credit facility amends and restates the company’s prior credit facility to, among other things, extend the maturity date, increase the aggregate amount of revolving commitments to $600 million from $400 million, reinstate the aggregate amount of outstanding term loans to $100 million and modify pricing and covenants.

The revolver expires on May 6, 2020 and includes sublimits for the issuance of standby letters of credit, swingline loans and multicurrency borrowings.

The term loan also expires on May 6, 2020 and requires quarterly payments of principal at the rate of $1.25 million beginning June 30 through March 31, 2017, $1,875,000 beginning June 30, 2017 through March 31, 2019 and $2.5 million beginning June 30, 2019 through March 31, 2020, with $65 million payable in the final quarter of the facility’s term.

The facility includes an accordion feature allowing the company to increase the aggregate amount available to up to $900 million.

Pricing is based on the company’s consolidated senior secured leverage ratio. Specifically, the spread for Libor loans ranges form 125 basis points to 200 bps. The commitment fee ranges from 17.5 bps to 30 bps.

The credit agreement includes financial covenants relating to the consolidated senior secured leverage ratio, consolidated total leverage ratio, consolidated interest coverage ratio and minimum liquidity.

“The amended and restated credit facility provides us with increased flexibility and liquidity to execute our growth strategy. We are pleased with the strong support of our lenders, all of whom have renewed their commitments to Kaman,” senior vice president and chief financial officer Robert D. Starr said in a press release on Wednesday.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Citizens Bank, NA were the joint bookrunners and joint lead arrangers.

Kaman is a Bloomfield, Conn.-based distributor of industrial parts to aerospace and other markets.

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