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Mohawk Industries extends its $1.8 billion revolver to October 2024
By Sarah Lizee
Olympia, Wash., Oct. 25 – Mohawk Industries, Inc. amended and restated its $1.8 billion revolving credit agreement on Oct. 18, extending the maturity to Oct. 18, 2024 from March 26, 2022, according to an 8-K filing with the Securities and Exchange Commission.
Wells Fargo Securities, LLC, BofA Securities, Inc., Barclays Bank plc, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and U.S. Bank NA are the joint lead arrangers and joint bookrunners. Bank of America, NA is the administrative agent.
Bank of America, Barclays, JPMorgan, Mizuho, MUFG, PNC Bank, NA, SunTrust Bank and U.S. Bank are syndication agents. BNP Paribas and UniCredit Bank AG, New York Branch are the documentation agents.
Interest is Libor plus 100 basis points to 175 bps, and the commitment fee is 9 bps to 20 bps, in each case depending on the consolidated net leverage ratio. Initially, interest is Libor plus 110 bps and the commitment fee is 11 bps.
The amendment also renewed the company’s option to extend the maturity up to two times for an additional one-year period each.
Some of the negative covenants were modified to provide the company with additional flexibility, including additional flexibility to make acquisitions and incur debt.
The company must maintain a consolidated interest coverage ratio of at least 3x and a consolidated net leverage ratio of no more than 3.75x, subject to temporary increases to 4x following a specified acquisition, each as of the last day of any fiscal quarter.
Other terms of the revolver are substantially the same, according to the 8-K.
The company can use the proceeds for general corporate purposes, including working capital, capital expenditures, financing acquisitions, investments and refinancing other debt.
Mohawk, a maker of floor covering products, is based in Calhoun, Ga.
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