Multi-Color restates loan for $500 million revolver due 2019

By Marisa Wong

Madison, Wis., Nov. 21 – Multi-Color Corp., Collotype International Holdings Pty. Ltd. and some other subsidiaries entered into an amended and restated credit agreement on Friday for a new five-year $500 million credit facility with a consortium of bank lenders, according to an 8-K filing with the Securities and Exchange Commission.

The total commitment amount is comprised of a $460 million revolver that allows the company to borrow in alternative currencies up to the equivalent of $50 million and an Australian dollar equivalent of a $40 million revolver.

Loan proceeds may be used to repay debt under the company’s previously existing credit facilities, for working capital, capital expenditures and other corporate purposes and to fund permitted acquisitions.

Loans under the U.S. sub-facility bear interest at Libor plus an applicable margin of 150 basis points to 250 bps, based on the company’s consolidated senior secured leverage ratio.

Loans under the Australian sub-facility bear interest at the BBSY rate plus an applicable margin ranging from 150 bps to 250 bps based on the company’s consolidated senior secured leverage ratio.

The company intends to borrow about $175 million under the U.S. sub-facility and roughly $29 million under the Australian sub-facility, which will be used, together with proceeds from its 6 1/8% senior notes due 2022, to repay all outstanding obligations under its existing credit facilities.

The company’s ability to borrow under the restated credit agreement is conditioned on the issuance of the 6 1/8% notes.

The credit agreement requires the company to maintain the following financial covenants at Dec. 31 and the end of each quarter after that: a maximum consolidated senior secured leverage ratio of no more than 3.50 to 1.00; a maximum consolidated leverage ratio of no more than 4.50 to 1.00; and a minimum consolidated interest coverage ratio of not less than 4.00 to 1.00.

Bank of America, NA is the administrative agent, swingline lender and U.S. letter-of-credit issuer, and Westpac Banking Corp. as Australian administrative agent and Australian letter-of-credit issuer.

Merrill Lynch, Pierce, Fenner & Smith Inc., J.P. Morgan Securities LLC and BMO Capital Markets are joint lead arrangers and joint bookrunners. JPMorgan Chase Bank, NA and BMO Harris Financing, Inc. are co-syndication agents. Rabobank Nederland, New York Branch, and KeyBank NA are co-documentation agents.

Multi-Color is a Cincinnati-based label product maker.

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