Knowles draws $400 million under credit facility as part of spinoff

By Toni Weeks

San Luis Obispo, Calif., March 3 - Knowles Corp. borrowed $400 million under its $500 million credit agreement dated Jan. 27, according to an 8-K filing with the Securities and Exchange Commission.

Of the amount, Knowles drew on Feb. 28 $100 million from its five-year senior secured revolving credit facility and $300 million under its five-year senior secured term loan facility.

Borrowings accrue interest at Libor plus 150 basis points. The margin was set based on the company's leverage as measured by a consolidated total debt to consolidated EBITDA ratio. A commitment fee of 25 bps will accrued on the average daily unused $100 million portion of the revolver and may range from 20 bps to 40 bps.

Proceeds were used to finance a $400 million distribution to Dover Corp. immediately prior to Knowles' spinoff from Dover on Feb. 28.

Knowles, an Itasca-Ill.-based supplier of advanced micro-acoustic, specialty components and human interface solutions, will be a stand-alone, publicly traded company following the spinoff. Its common stock (NYSE: KN) will begin trading on March 3.

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