Middleby gets $3.5 billion credit facility via revolver, term loan

By Wendy Van Sickle

Columbus, Ohio, Feb. 3 – Middleby Corp. entered into a $3.5 billion five-year amended and restated credit agreement on Friday, comprising a $2.75 million revolver and a $750 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

The facility, which may be expanded to up to $4 billion, replaces the company’s existing credit facility dated July 28, 2016.

The new credit agreement matures in 2025, with one-year extension options.

Borrowings bear interest at Libor plus 100 basis points to 187.5 bps, and the revolving commitment fee ranges from 12.5 bps to 30 bps; both are based on the company’s leverage ratio. Initially, the margin is 162.5 bps and the revolving commitment fee is 25 bps.

The term loan amortizes in equal quarterly installments due on the last day of each fiscal quarter, commencing with the first full fiscal quarter after the closing date, in an aggregate annual amount equal to 2.5% of the original aggregate principal amount, with the balance, plus any accrued interest, due after five years.

BofA Securities, Inc., JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC, PNC Capital Markets LLC and BMO Capital Markets are the joint lead arrangers and joint book managers.

JPMorgan, Wells Fargo Bank, NA, PNC Bank, NA and BMO are the co-syndication agents.

Truist Bank, U.S. Bank NA and Citizens Bank, NA are the co-documentation agents.

Bank of America, NA is the administrative agent.

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 4.00 to 1.00, which may be adjusted to 4.50 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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