SPX amends loan to add step up in pricing, change use of proceeds from asset sales requirements

By Sara Rosenberg

New York, Dec. 23 - SPX Corp. amended its senior secured credit facility, adding a step up in pricing based on ratings, modifying the use of proceeds from asset sales provision and allowing the company to buy back an unlimited amount of equity under certain conditions, according to a company news release.

The company's interest rate will increase by 25 basis points if the credit facilities are rated Ba3 or lower by Moody's Investors Service or BB+ or lower by Standard & Poor's.

As for asset sales, the company is now only required to use the first $150 million from the sale of Bomag and Edwards Systems Technology to prepay term loans. The remaining proceeds are not required to be used to prepay term loans or to be reinvested. The amendment also adds the flexibility for the use of up to $1 billion of proceeds from the sale of additional assets.

Lastly, the company now has the ability to purchase an unlimited amount of its equity but only if its ratio of gross debt to EBITDA is less than 2.5-to-1.0, the release said.

SPX is a Charlotte, N.C., provider of technical products and systems, industrial products and services, flow technology, cooling technologies and services, and service solutions.

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