Materion gets $325 million five-year amended, restated revolver

By Angela McDaniels

Tacoma, Wash., July 18 - Materion Corp. entered into an amended and restated credit agreement on Wednesday that matures on July 13, 2016 and provides for a $325 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Materion Advanced Materials Technologies and Services Netherlands BV is also a borrower under the facility.

JPMorgan Chase Bank, NA is the administrative agent. J.P. Morgan Securities LLC is the bookrunner and arranger. Bank of America, NA, Keybank NA and Wells Fargo Bank, NA are the syndication agents.

The initial interest rate is Libor plus 150 basis points, and the initial commitment fee is 22.5 bps. The margin over Libor ranges from 150 bps to 250 bps, and the commitment fee ranges from 22.5 bps to 40 bps, both depending on leverage.

The revolver has sub-facilities for revolving loans, swingline loans, letters of credit and foreign borrowings. Borrowings can be made in dollars, euros, pounds sterling or Japanese yen.

The credit agreement also includes an uncommitted incremental facility under which the company may be able to borrow up to $100 million of term loans.

Covenants include a maximum leverage ratio of no more than 3.5 times and a minimum fixed charge coverage ratio of 1.5 times.

Proceeds will be used to finance working capital needs and general corporate purposes.

Materion, formerly known as Brush Engineered Materials Inc., produces high-performance advanced engineered materials and is based in Mayfield Heights, Ohio.

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