Oshkosh secures new $850 million revolver, $325 million term loan

By Sarah Lizee

Olympia, Wash., April 9 – Oshkosh Corp. entered into a second amended and restated credit agreement that provides for an $850 million unsecured revolving credit facility and a $325 million unsecured term loan facility.

The agreement closed on April 3 with Bank of America, NA as administrative agent and replaced the company’s existing credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures in April 2023.

The term loan is due in quarterly principal installments equal to 1.25% of the original principal amount of the term loan facility beginning Sept. 30, 2019 with a balloon payment of the entire remaining outstanding principal balance due at maturity in April 2023.

Availability under the revolver is reduced by outstanding letters of credit, which were about $88.1 million as of April 3.

There is an up to $500 million accordion option.

As of April 3, other than the letters of credit, no loans were outstanding under the revolver, and the company borrowed $325 million under the term loan facility to refinance the existing credit agreement, pay fees and expenses in connection with the closing of the credit agreement and for other corporate purposes.

Borrowings bear interest at Libor plus 112.5 basis points to 175 bps, depending on corporate family ratings.

The commitment fee ranges from 12.5 bps to 27.5 bps per year of the average daily unused portion of the total revolving commitments and from 56.25 bps to 175 bps per year of the maximum amount available to be drawn for each letter of credit outstanding under the credit agreement.

The agreement contains a maximum leverage ratio covenant as of the last day of any fiscal quarter of 3.75 times, subject to a temporary increase to up to 4.25 times in connection with some material acquisitions, and a minimum interest coverage ratio covenant of 2.5 times as of the last day of any fiscal quarter.

Bank of America, JPMorgan Chase Bank, NA, Wells Fargo Bank, NA and U.S. Bank NA are issuers, and U.S. Bank and Bank of America are swingline lenders. JPMorgan, Wells Fargo and U.S. Bank are co-syndication agents.

Branch Banking and Trust Co., HSBC Bank USA, NA, ING Bank NV, Dublin Branch, PNC Bank, NA, Sumitomo Mitsui Banking Corp., SunTrust Bank and TD Bank, NA are co-documentation agents. Merrill Lynch, Pierce, Fenner & Smith Inc., JPMorgan, Wells Fargo Securities, LLC and U.S. Bank are joint lead arrangers and bookrunners.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.