Knoll amends credit agreement, gets $750 million five-year facility

By Sarah Lizee

Olympia, Wash., Jan. 25 – Knoll, Inc. amended and restated its existing credit facility dated May 20, 2014 with Bank of America, NA as administrative agent and swingline lender on Tuesday for a $750 million five-year credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which matures on Jan. 23, 2023, consists of a $400 million revolving commitment that may be available in dollars, euros, sterling and other foreign currencies to be agreed on, a $250 million term loan commitment and a €81,732,408 multicurrency term loan commitment.

The amended credit agreement also includes an option to increase the size of the revolving credit facility or incur incremental term loans by up to the greater of $250 million and 90% of the EBITDA of the company and its subsidiaries for the four fiscal quarters prior to such increase or additional loan, subject to the satisfaction of some terms and conditions.

The proceeds of the credit facility will be used, among other things, for an acquisition, to refinance debt and for general corporate purposes.

Borrowings under the term loan facilities amortize in equal quarterly installments equaling 5% per annum, with the remaining borrowings due on the maturity date.

Interest on revolving credit and term loans will accrue at Libor plus a margin of 100 basis points to 250 bps, depending on the company’s leverage ratio. The commitment fee will range from 17.5 bps to 35 bps, also depending on the company’s leverage ratio.

The facility will initially bear interest at Libor plus 175 bps and have a 25 bps commitment fee.

Merrill Lynch, Pierce, Fenner & Smith Inc., Citizens Bank, NA, Suntrust Robinson Humphrey and TD Securities (USA) LLC are joint lead arrangers, with Merrill Lynch as bookrunner. Citizens Bank, Suntrust Bank and TD Bank, NA are co-syndication agents. Branch Banking and Trust Co., HSBC Bank USA, NA and U.S. Bank NA are co-documentation agents.

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

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