Middleby gets $2.5 billion five-year multicurrency replacement revolver

By Marisa Wong

Morgantown, W.Va., Aug. 3 – Middleby Corp. entered into a five-year $2.5 billion multicurrency senior revolving credit agreement on July 28, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which may be increased to $3 billion, replaces the company’s pre-existing $1.25 billion senior revolving credit facility set to mature in August 2017.

The new facility matures in 2021, with one-year extension options.

Borrowings bear interest at Libor plus 150 basis points. The applicable margin is adjustable based on the company’s leverage ratio.

The new facility provides for availability to fund acquisitions and share repurchases as long as the company maintains some financial ratios.

The credit agreement requires Middleby to satisfy the following financial covenants: a minimum interest coverage ratio of 3.00 to 1.00 and a maximum leverage ratio of 3.50 to 1.00, which may be adjusted to 4.00 to 1.00 for a four-quarter period in connection with qualified acquisitions.

The foodservice equipment company is based in Elgin, Ill.

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