Masco gets $1 billion unsecured revolving credit facility due 2024

By Sarah Lizee

Olympia, Wash., March 19 – Masco Corp. entered into a credit agreement on March 13 with JPMorgan Chase Bank, NA as administrative agent, providing for a $1 billion unsecured revolving credit facility due March 13, 2024, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase, Citibank, NA and PNC Capital Markets LLC are joint bookrunners and joint lead arrangers.

Citibank and PNC Bank, NA are co-syndication agents. Deutsche Bank Securities Inc., Royal Bank of Canada, SunTrust Bank, Bank of America, NA, Fifth Third Bank and Wells Fargo Bank, NA are co-documentation agents.

The facility may be extended twice for one-year periods at the company’s request.

Interest is Libor plus 91 basis points to 140 bps, depending on the company’s index debt ratings. The facility fee ranges from 9 bps to 22.5 and is also based on ratings.

Borrowings may be made in U.S. dollars, euros, pounds sterling, Canadian dollars and some other currencies. There is a foreign currency sublimit of $500 million equivalent and a sublimit for swingline loans of $100 million.

Letters of credit may also be issued under the facility up to $25 million.

The company may at its option request an increase in the total commitment by up to $500 million, subject to customary terms and conditions.

The company is obligated to maintain a leverage ratio of net consolidated debt to consolidated EBITDA not exceeding 4 to 1 and a minimum interest coverage ratio of not less than 2.5 to 1.

The new credit agreement replaces the company’s credit agreement dated March 28, 2013 with JPMorgan Chase as administrative agent, which had a total commitment of $750 million. The agreement was terminated and all commitments were cancelled in connection with entering into the new credit agreement.

Proceeds from the new credit agreement will be used for general corporate purposes, including acquisitions, refinancing of the 2013 credit agreement and working capital purposes.

Masco is a Taylor, Mich., building products company.

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