Knoll releases additional details on new $500 million credit facility

By Angela McDaniels

Tacoma, Wash., May 21 - Knoll, Inc. released more information about its new $500 million credit facility due May 20, 2019 in an 8-K filing with the Securities and Exchange Commission on Wednesday.

The credit facility consists of a $300 million revolving credit facility and a $200 million term loan.

The initial interest rate is Libor plus 200 basis points, and the commitment fee for the revolver is 30 bps. The margin over Libor ranges from 100 bps to 200 bps, and the commitment fee ranges from 17.5 bps to 30 bps, both depending on the company's leverage ratio.

BofA Merrill Lynch is the bookrunner and a joint lead arranger. RBS Securities Inc. and SunTrust Robinson Humphrey, Inc. are also joint lead arrangers.

Bank of America, NA is the administrative agent, swingline lender and letter-of-credit issuer. Royal Bank of Scotland plc, SunTrust Bank and TD Bank, NA are the co-syndication agents. Branch Banking and Trust Co., US Bank NA and Santander Bank are the co-documentation agents.

The credit facility has a $200 million accordion feature.

Borrowings under the term loan amortize in equal quarterly installments of $2.5 million.

The new agreement replaces the company's $450 million credit facility and reduces the company's borrowing costs by 25 bps, according to a company news release.

As of Tuesday, there was $127 million outstanding under the revolver and $200 million outstanding under the term loan.

Proceeds will be used for general corporate purposes, including strategic acquisitions, stock buybacks and cash dividends.

Knoll is based in East Greenville, Pa., and makes furnishings and accessories, textiles, and leathers for the workplace and homes.

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