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Knowles amends and restates credit agreement via JPMorgan
By Toni Weeks
San Luis Obispo, Calif., Jan. 6 – Knowles Corp. and subsidiary Knowles Luxembourg International Sarl entered into an amended and restated credit agreement on Dec. 31 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The amended and restated agreement increased the revolving credit facility to $350 million from $200 million, increased the letter-of-credit subfacility to $50 million from $25 million, eliminated the $35 million swingline subfacility and reduced to $100 million from $250 million the amount of additional incremental revolving or term loans.
As of Dec. 31, the company had $100 million of borrowings outstanding under the revolver and $300 million of borrowings outstanding under the term loan. Borrowings under the term loan and initial borrowings under the revolver were used to fund a cash payment to the company’s former parent company in connection with its spin-off on Feb. 28, 2014.
Borrowings under the revolver may be used for working capital and general corporate purposes, including share repurchases. Up to $100 million of the revolver is available for borrowings in euros, pounds and other currencies.
Loans outstanding under the term loan will mature on Jan. 27, 2019.
The company may repay borrowings under the facilities and/or reduce the unutilized portion of the revolver without premium or penalty.
The interest rate as of Dec. 31 was 1.91% with a commitment fee of 30 bps. Both are based on the company’s leverage as measured by a consolidated total indebtedness to consolidated EBITDA ratio.
The credit facilities require the company to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.25:1.00 and a maximum ratio of consolidated total indebtedness to consolidated EBITDA of 3.25:1.00.
Knowles is an Itasca-Ill.-based supplier of advanced micro-acoustic, specialty components and human interface services.
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