Mohawk refinances loans with $900 million five-year revolver via BofA

By Susanna Moon

Chicago, July 12 - Mohawk Industries, Inc. closed a $900 million five-year senior secured revolving credit facility last Friday with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

In connection with the facility, the company terminated its $600 million agreement due Sept. 2, 2013 with Wells Fargo Bank, NA as administrative agent.

Interest will be Libor plus 125 basis points to 200 bps and there is a commitment fee of 25 bps to 40 bps, based on leverage.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures, financing acquisitions, investments and refinancing debt.

The facility will mature on July 8, 2016, and the company may terminate and prepay the facility at any time without penalty except for breakage costs.

JPMorgan Chase Bank, NA, SunTrust Bank and Wells Fargo Bank, NA are syndication agents; Barclays Bank plc, ING Belgium SA/NV, Mizucho Corporate Bank, Ltd., Regions Bank and U.S. Bank NA are documentation agents; and Bank of America Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC are joint lead arrangers and bookrunners.

Mohawk Industries is a Calhoun, Ga.-based producer and seller of floor covering products for residential and commercial applications.

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