Standard Motor Products amends revolver to help fund acquisition

By Sara Rosenberg

New York, Feb. 10 - Standard Motor Products Inc. amended its revolver to help fund the acquisition of Dana Corp.'s Engine Management Division.

Proceeds from the enlarged facility will also be used to provide working capital and for general corporate purposes.

Under the amendment, the revolver was increased in size to $305 million from $225 million and the term extended to February 2008.

General Electric Capital Corp. is the agent, Bank of America is the syndication agent and GMAC Commercial Finance LLC is the documentation agent on the loan.

Under the amendment, the interest rate on the revolver was modified to:

* Libor plus 175 basis points if excess formula availability is greater than $75 million or borrowers and their subsidiaries on a consolidated basis for the 12-month period then ended have EBITDA of not less than $63 million and excess formula availability is greater than $50 million;

* Libor plus 200 basis points if excess formula availability is greater than $50 million but less than $75 million or borrowers and their subsidiaries on a consolidated basis, with respect to the 12-month period then ended, have EBITDA of not less than $63 million and excess formula availability is greater than $25 million;

* Libor plus 225 basis points if excess formula availability is greater than $25 million but less than $50 million;

* Libor plus 250 basis points if excess formula availability is greater than $10 million but less than $25 million;

* and, Libor plus 275 basis points if excess formula availability is less than $10 million, according to a filing with the Securities and Exchange Commission.

After the first anniversary of the acquisition closing date, the interest rate on the revolver will change to:

* Libor plus 200 basis points if excess formula availability is greater than $75 million or borrowers and their subsidiaries on a consolidated basis, with respect to the 12-month period then ended, have EBITDA greater than $75 million and excess formula availability is greater than $60 million;

* Libor plus 225 basis points if excess formula availability is greater than $60 million but less than $75 million or borrowers and their subsidiaries on a consolidated basis, with respect to the 12-month period then ended, have EBITDA greater than $75 million and excess formula availability is greater than $35 million;

* Libor plus 250 basis points if excess formula availability is greater than $35 million but less than $60 million;

* Libor plus 275 basis points if excess formula availability is greater than $20 million but less than $35 million;

*Aad, Libor plus 300 basis points if excess formula availability is less than $20 million, according to the filing.

Standard Motor Products is a Long Island City, N.Y. manufacturer and distributor of replacement parts for motor vehicles.

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