Oshkosh enters into $1.1 billion five-year revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, March 24 – Oshkosh Corp. entered into an amended and restated credit agreement that provides for a $1.1 billion revolving credit facility that matures in five years, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement closed on March 23 with Bank of America, NA as administrative agent and replaces the company's existing credit agreement.

Availability under the revolver is reduced by the company's roughly $17.9 million outstanding letters of credit.

An accordion feature provides for up to $550 million of additional capacity in the form of additional revolving commitments or term loans.

Borrowings will bear interest at term SOFR, adjusted Sonia, Euribor, Tibor or CDOR plus a margin that ranges from 87.5 basis points to 150 bps, and a commitment fee ranges from 8 bps to 22.5 bps, both depending on leverage ratio.

Initially, the margin is 112.5 bps and the commitment fee is 12.5 bps.

The company must maintain a maximum leverage ratio of 3.75 times or 4.25 times temporarily following certain acquisitions.

At closing, no loans were outstanding under the revolver, other than the letters of credit. Proceeds may be used for working capital, capital expenditures and other general corporate purposes.

BofA Securities, Inc., JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC and U.S. Bank, NA are the joint lead arrangers and joint bookrunners.

JPMorgan, Wells Fargo Bank, NA and U.S. Bank, NA are co-syndication agents.

Fifth Third Bank, NA, HSBC Bank USA, NA, ING Bank, NV, Dublin Branch, PNC Bank, NA, Sumitomo Mitsui Banking Corp., TD Bank, NA and U.S. Bank are co-documentation agents.

Oshkosh is an Oshkosh, Wis.-based specialty vehicle and equipment company.

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