Modine increases revolver to $175 million, extends it, lowers pricing

By Angela McDaniels

Tacoma, Wash., Sept. 4 - Modine Manufacturing Co. amended and restated its senior revolving credit facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

With the amendments, Modine increased the size of the revolver to $175 million from $145 million, extended the maturity date to Aug. 30, 2018 from Aug. 12, 2014 and upsized the accordion feature to $75 million, subject to certain conditions.

The margin over Libor was lowered to a range of 125 basis points to 225 bps. The exact margin depends on the company's leverage ratio. The commitment fee is 20 bps to 37.5 bps.

Up to $25 million of the revolver is available for commercial and standby letters of credit, and up to $25 million is available as swingline loans. Up to $72.5 million of the revolver is available in foreign currencies.

Under the revolver's covenants, the company's leverage ratio is capped at 3.25 to 1.00, subject to exception if it completes a permitted acquisition with a cash purchase price of more than $50 million, and its interest expense coverage ratio must be at least 3.0 to 1.0.

JPMorgan Chase Bank, NA is the administrative agent.

Modine is based in Racine, Wis. It makes thermal management systems and components used in vehicles, heating, ventilation and air conditioning equipment, off-highway and industrial equipment and refrigeration systems.

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