Martin Marietta gets $250 million term loan, $350 million revolver

By Angela McDaniels

Tacoma, Wash., Dec. 5 - Martin Marietta Materials, Inc. entered into a credit agreement on Nov. 29 that provides for a $250 million senior term loan and a $350 million senior revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date is Nov. 29, 2018.

JPMorgan Chase Bank, NA is the administrative agent. Wells Fargo Bank, NA, Branch Banking and Trust Co. and SunTrust Bank are the co-syndication agents. J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BB&T Capital Markets, SunTrust Robinson Humphrey, Inc. and Deutsche Bank Securities Inc. are the joint lead arrangers and joint bookrunners.

For the term loan, the interest rate ranges from Libor plus 125 basis points to Libor plus 200 bps.

For the revolver, the interest rate ranges from Libor plus 110 bps to Libor plus 165 bps, and the facility fee rate ranges from 15 bps to 35 bps.

The term loan replaced a previous term loan under which $240 million was outstanding.

The company must make quarterly principal payments of 1.25% of the outstanding balance during 2014 and 2015 and quarterly principal payments of 1.875% of the outstanding balance during 2016, 2017 and 2018.

The credit agreement requires the company's ratio of consolidated debt to consolidated EBITDA for the trailing 12 months to not exceed 3.5 times as of the end of any fiscal quarter, provided that the company may exclude from the ratio debt incurred in connection with certain acquisitions for a period of 180 days so long as it maintains specified ratings on its long-term unsecured debt and the ratio calculated without such exclusion does not exceed 3.75 times.

Additionally, if there are no amounts outstanding under both the revolver and the company's accounts receivable securitization facility, consolidated debt will be reduced for purposes of the covenant calculation by the company's cash and cash equivalents in excess of $50 million, such reduction not to exceed $200 million.

Martin Marietta is a Raleigh, N.C.-based producer of aggregates for the construction industry.

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