Matrix lifts revolver to $200 million, extends to 2019; pricing cut

By Susanna Moon

Chicago, March 19 - Matrix Service Co. said it lifted the size of its senior secured revolving credit facility to $200 million and extended the maturity date to March 13, 2019.

The company also amended pricing, cutting the rate to Libor plus 125 basis points to 200 bps based on leverage. The unused fee is now 20 bps to 35 bps, reduced from 30 bps to 45 bps.

Matrix amended its credit agreement on March 13 with J.P. Morgan Securities LLC as the lead arranger and bookrunner and JPMorgan Chase Bank, NA as the administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increased the sublimit for Canadian dollar loans to $40 million from $15 million and for swingline loans to $20 million from $10 million with a $5 million Canadian dollar sublimit.

The facility amount was increased from $125 million and the maturity extended from Nov. 7, 2016.

The amendment also includes an accordion feature, which the company may tap for aggregate revolving loan commitments of up to $250 million.

The limit on permitted acquisitions in any one-year period was raised to $50 million from $25 million, if the company's senior leverage ratio is between 1 times and 1.75 times on a pro forma basis as of the last day of the fiscal quarter immediately prior to the acquisition and after giving effect to the completion of the acquisition. Also, at least $25.0 million of the revolving loan commitment must be unused after completion of the acquisition.

There continues to be no dollar limit under the credit agreement on permitted acquisitions if the company's senior leverage ratio would be less than 1 times on a pro forma basis as of the last day of the fiscal quarter immediately prior to the acquisition and after giving effect to the completion of the acquisition, and 50% of the revolving loan commitment is unused after completion of the acquisition.

Proceeds will be used for working capital, acquisitions, capital expenditures, issuance of letters of credit and other corporate purposes.

"Through this transaction we were able to expand our liquidity and improve our debt pricing, which are important to and support our organic and acquisition growth strategies," John Hewitt, president and chief executive officer of Matrix, said in a company press release.

Matrixx is the owner of Bridgewater, N.J.-based Zicam, a developer and marketer of over-the-counter cold remedy products.

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