Oshkosh reduces credit facility by $25 million, lowers pricing

By Angela McDaniels

Tacoma, Wash., July 16 - Oshkosh Corp. said it amended its credit agreement on Friday, lowering pricing, reducing availability under the revolving credit facility and changing the amortization schedule of the term loan facility.

For the interest rate, the margin over Libor was reduced to a range of 150 basis points to 250 bps from a range of 225 bps to 350 bps, according to an 8-K filing with the Securities and Exchange Commission.

The commitment fee was reduced to a range of 25 bps to 50 bps from a range of 40 bps to 50 bps.

The fee payable by the company with respect to the maximum amount available to be drawn for each letter of credit was reduced to a range of 75 bps to 250 bps from a range of 112.5 bps to 350 bps.

The amendment reduced the initial maximum availability under the revolver to $525 million due October 2015 from $550 million.

The amendment also updated the amortization schedule for the term loan facility to give effect to prior prepayments made by the company. The outstanding amount of the term loan facility is currently $455 million. Under the amendment, the term loan will be due in quarterly principal installments of $16.25 million beginning Dec. 31, 2013, with a balloon payment due at maturity in October 2015.

Finally, the amendment modified the restricted payments covenant to allow a limited amount of dividends and other distributions subject to some conditions.

Oshkosh makes specialty access equipment, commercial, fire and emergency and military vehicles and vehicle bodies. The company is based in Oshkosh, Wis.

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