Simpson Manufacturing obtains $300 million five-year revolving loan

By Jennifer Chiou

New York, Aug. 1 - Simpson Manufacturing Co., Inc. entered into a $300 million unsecured revolving credit facility on July 27 with Wells Fargo Bank, NA as administrative agent and Union Bank, NA, HSBC Bank USA, NA, Bank of Montreal and the Northern Trust Co. as lenders, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a letter-of-credit subfacility of up to $50 million. Wells Fargo is the swingline lender and LOC issuer.

The commitment amount may be increased to up to $500 million.

Borrowings will bear interest at Libor plus 60 basis points to 145 bps based on leverage.

There is an annual facility fee of 15 bps to 30 bps based on availability.

Simpson is required to maintain a maximum consolidated leverage ratio of not greater than 3.00 to 1.00 as of the last day of each fiscal quarter and, similarly, a minimum consolidated interest coverage ratio of not less than 3.00 to 1.00 as of the last day of each fiscal quarter.

Proceeds will go towards working capital and other general business needs.

Pleasanton, Calif.-based Simpson manufactures building materials, including wood-to-wood, wood-to-concrete and wood-to-masonry connectors.

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