Andersons enters into $1.65 billion credit agreement with U.S. Bank

By Sarah Lizee

Olympia, Wash., Jan. 14 – Andersons, Inc. entered into a credit agreement on Friday with U.S. Bank NA as lead agent providing for up to $1.65 billion in unsecured borrowings, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement includes a $900 million five-year revolving credit facility, a $250 million 364-day revolver, a $250 million five-year term loan and a $250 million seven-year term loan.

The 364-day revolver, five-year revolver and five-year term loan bear interest at Libor plus a margin that ranges from 137.5 basis points to 200 bps, with an initial margin of 175 bps. The seven-year term loan will bear interest at Libor plus 162.5 bps to 225 bps, with an initial margin of 200 bps. The margins are based on a recourse long-term debt to capitalization ratio.

The commitment fee ranges from 15 bps to 22.5 bps and is initially 20 bps.

The five-year revolver replaces Andersons’ current $800 million revolving line of credit.

A portion of the term loan will be used to pay down debt assumed in the Lansing Trade Group acquisition.

U.S. Bank, Farm Credit id-America, PCA, Merrill Lynch, Pierce, Fenner & Smith Inc., BMO Harris Bank NA, Bank of the West, Fifth Third Bank and ABN AMRO Capital USA LLC are joint lead arrangers and joint bookrunners.

Bank of America, NA, BMO Harris, Bank of the West, Fifth Third and ABN AMRO are co-syndication agents. Branch Banking and Trust Co. and Citibank, NA are co-documentation agents.

Andersons is a Maumee, Ohio-based diversified company with interests in the grain, ethanol and plant nutrient sectors as well as in railcar leasing and repair, turf products production and general merchandise retailing.

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