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MYR gets $375 million five-year revolver at Libor plus 100-175 bps
By Sarah Lizee
Olympia, Wash., Sept. 17 – MYR Group Inc. entered into a five-year second amended and restated credit agreement on Friday, which provides $375 million revolver, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA and Bank of America, NA were joint lead arrangers and joint bookrunners.
Interest is Libor plus 100 basis points to 175 bps, depending on the company’s consolidated leverage ratio.
There is a commitment fee of 15 bps to 25 bps, also depending on leverage.
The facility may be used for revolving loans and up to $150 million may be used for letters of credit.
It also allows for revolving loans and letters of credit in Canadian dollars and other currencies, up to the U.S. dollar equivalent of $75 million.
The company has an expansion option to increase the commitments under the facility or enter into incremental term loans, subject to some conditions, by up to an additional $200 million.
Borrowings are expected to be used to refinance existing debt and for working capital, capital expenditures, acquisitions and other general corporate purposes.
The credit agreement amends and restates the company’s five-year amended and restated credit agreement dated June 30, 2016, which included a $250 million revolver and a $100 million expansion option.
The new credit agreement restricts some types of payments when the company’s consolidated leverage ratio exceeds 2.5x or the company’s consolidated liquidity is less than $50 million.
The company is also subject to financial covenants and must maintain a maximum consolidated leverage ratio of 3x and a minimum interest coverage ratio of 3x.
MYR is a Rolling Meadows, Ill.-based holding company of specialty construction service providers.
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