Quanex enters into $150 million unsecured revolving credit facility

By Jennifer Chiou

New York, Jan. 30 - Quanex Building Products Corp. entered into on Jan. 28 an up to $150 million unsecured revolving credit facility with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC acted as lead arranger and syndication agent.

The commitment may be increased by up to $100 million.

The loan matures on Jan. 28, 2018.

The new revolver replaces the company's $270 million credit agreement dated April 23, 2008.

Borrowings will bear interest at Libor plus 100 basis points to 175 bps for loans made in dollars, while the margin will be 112.5 bps to 187.5 bps for other currencies, both depending on the company's consolidated leverage ratio.

There is a commitment fee of 15 bps to 35 bps.

Quanex has to maintain a ratio of consolidated interest expense of no less than 3.00 to 1.00 under the agreement. It must also keep its consolidated net income at greater than 3.25 to 1.00.

Proceeds will be used for working capital needs and other general corporate purposes.

Houston-based Quanex manufactures components for the vehicle and building products industries.

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