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Snap-on enters into $800 million five-year multi-currency revolver
By Sarah Lizee
Olympia, Wash., Sept. 18 – Snap-on Inc. obtained an $800 million multi-currency revolving credit facility that terminates on Sept. 16, 2024 on Monday, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA, Citibank, NA and U.S. Bank NA are the joint bookrunners and joint lead arrangers, with JPMorgan as administrative agent. Citi and U.S. Bank are syndication agents, and Barclays Bank plc, Mizuho Bank, Ltd. and Wells Fargo Bank, NA are documentation agents.
The new revolver amends and restates Snap-on’s previous $700 million multi-currency revolver set to terminate on Dec. 15, 2020.
As of Monday, no amounts were outstanding under either facility.
Borrowings under the new revolver will bear interest at varying rates based on either Snap-on’s long-term debt ratings or its EBITDA ratio. Interest is initially Libor plus 81 basis points. The margin over Libor ranges from 58 bps to 102.5 bps.
There is a facility fee that ranges from 4.5 bps to 10 bps, also based on ratings or the EBITDA ratio. It is initially 6.5 bps.
The new revolver requires Snap-on to maintain compliance with various covenants, including either a ratio not greater than 0.6 to 1.0 of consolidated net debt to the sum of consolidated net debt plus total equity and less accumulated other comprehensive income or loss, or a consolidated net debt to EBITDA ratio not greater than 3.5 to 1.0.
Snap-on may up to two times during any five-year period elect to increase the maximum leverage ratio to 0.65 to 1.00 and/or increase the maximum consolidated net debt to EBITDA ratio to 4 to 1 for four consecutive fiscal quarters in connection with some material acquisitions.
The tool and equipment manufacturer is based in Kenosha, Wis.
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