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Armor Holdings closes on $825 million credit facility for acquisition of Stewart & Stevenson
New York, June 1 - Armor Holdings, Inc. said it closed on an $825 million senior secured credit facility, using proceeds to replace its old loan and, with cash on hand, to fund the acquisition of Stewart & Stevenson Services, Inc.
The new facility includes a $425 million five-year revolving credit facility, a $100 million five-year term loan and a $300 million 30-day interim term loan, according to an 8-K filing with the Securities and Exchange Commission.
The revolver has a sub-limit of $75 million for letters of credit and $20 million for swing-line loans.
Armor closed on the facility on May 25. As of June 1 it had $20 million drawn on the interim term loan, $245 million drawn on the revolver and $100 million outstanding on the term loan. Borrowing availability on the revolver was $161 million.
Wachovia Capital Markets, LLC was lead arranger and bookrunner for the facility, Bank of America, NA and Suntrust Bank were syndication agents, Wachovia Bank, NA was administrative agent and Key Bank NA and JPMorgan Chase Bank were documentation agents.
Interest is at Libor plus 87.5 to 150 basis points, depending on leverage. For leverage of 3.75:1 and higher, the margin is 150 bps with a 30 bps unused fee, for leverage of 2.75:1 and higher but less than 3.75:1 the margin is 125 bps with a 25 bps unused fee, for leverage of 2.75:1 and higher but less than 2.75:1 the margin is 100 bps with a 22.5 bps unused fee, and for leverage of less than 1.75:1 the margin is 87.5 bps with a 20 bps unused fee. Initially the rates are Libor plus 125 bps with a 25 bps unused fee.
Armor is a Jacksonville, Fla.-based manufacturer and distributor of security products and vehicle armor systems serving military, law enforcement, homeland security and commercial markets. Stewart & Stevenson is a Houston-based manufacturer of military tactical wheeled vehicles.
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