Atkore amends ABL facility to extend maturity, reduce pricing

By Marisa Wong

Morgantown, W.Va., Dec. 22 – Atkore International Group Inc.’s wholly owned indirect subsidiary, Atkore International, Inc., amended its asset-based credit facility to, among other things, extend the maturity to Dec. 22, 2021 and decrease the interest rate margins, according to an 8-K filing with the Securities and Exchange Commission.

The $325 million facility is subject to a borrowing base and includes letter-of-credit and swingline sub-facilities.

Amounts are available in U.S. and Canadian dollars.

In addition, the company may request additional asset-based revolving credit commitments or asset-based term loans in an aggregate amount of up to $75 million.

Interest is equal to Libor (or CDOR for Canadian dollar-denominated loans) plus 125 basis points to 175 bps, based on availability. The commitment fee is 25 bps or 37.5 bps, depending on utilization.

There are no financial covenants included in the amended ABL credit agreement, other than a springing minimum fixed-charge coverage ratio of at least 1.0 to 1.0, which will be tested only when specified availability is less than the greater of (a) $22 million and (b) 10% of the lesser of the then applicable borrowing base and the then effective commitments under the facility.

UBS AG, Stamford Branch, Deutsche Bank AG New York Branch, Wells Fargo Bank, NA, JPMorgan Chase Bank, NA, Credit Suisse AG, Cayman Islands Branch, Citibank, NA and Royal Bank of Canada are joint lead arrangers and joint bookrunners for the amended ABL facility. UBS AG, Stamford Branch is administrative agent, and Deutsche Bank Securities Inc. is syndication agent.

As previously reported, Atkore also recently refinanced its first-lien term loan and second-lien term loan facility with an amended and restated $500 million first-lien term loan due December 2023 priced at Libor plus 300 bps with a 1% Libor floor.

Atkore is a Harvey Ill.-based electrical raceway solutions provider.

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