ACCO Brands ups revolver to $600 million, adds $100 million term loan

By Wendy Van Sickle

Columbus, Ohio, May 23 – ACCO Brands Corp. increased its revolving credit commitments by $100 million to $600 million and added a $100 million term loan under its credit agreement facility with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Additionally, he maturity date was also extended to May 23, 2024.

Effective May 23, the company also made some other amendments to the credit agreement, including:

• Replacing the minimum fixed charge coverage ratio of 1.25x with a minimum interest coverage ratio of 3x;

• Increasing the consolidated leverage ratio hurdle for unlimited restricted payments to 3.25x from 2.5x;

• Reducing the applicable rate on outstanding loans based on the company’s current consolidated leverage ratio by 25 basis points and lowering fees on undrawn amounts;

• Eliminating the requirement to make annual principal prepayments of excess cash flow;

• Reducing amortization payments for the term loans; and

• Increasing the qualified receivables transaction basket with respect to sales or financings of certain receivables.

At closing of the amendment, the company borrowed the entire principal amount committed under the term loan facility, which was used to repay revolver borrowings.

ACCO Brands is a Lake Zurich, Ill.-based office supply manufacturer.

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