Standex gets $225 million revolver due 2017 at Libor plus 125 bps

By Angela McDaniels

Tacoma, Wash., Jan. 11 - Standex International Corp. entered into a $225 million revolving credit facility due Jan. 5, 2017 on Jan. 5, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $100 million accordion feature, a $10 million sublimit for swingline loans and a $30 million sublimit for letters of credit.

The initial pricing is an interest rate of Libor plus 125 basis points and a commitment fee of 17.5 bps. The margin over Libor can range from 100 bps to 225 bps, and the commitment fee can range from 12.5 bps to 35 bps. Both depend on the company's debt-to-EBITDA ratio.

RBS Citizens, NA, Bank of America, NA and Sovereign Bank are the bookrunners and lead arrangers, and TD Bank, NA is the managing agent. RBS Citizens is the administrative agent, the swingline lender and a letter-of-credit issuer. Bank of America is the syndication agent, and Sovereign Bank is the documentation agent.

The new agreement replaces a $150 million revolver due September 2012, which was terminated. Borrowings under the new revolver were used to repay the $76.03 million that was outstanding under the old revolver.

Under the new credit agreement's covenants, the company must maintain a funded debt-to-EBITDA ratio of no greater than 3.5 to 1.0 and an EBIT to interest expense interest coverage ratio of no less than 3.0 to 1.0.

The representations, warranties and restrictive covenants are substantially similar to those of the old revolver, except that the new revolver contains no net worth covenant. The company said the new revolver also provides broader latitude with respect to acquisitions and dispositions and the incurrence of additional debt.

Funds borrowed under the new revolver may be used for debt repayment, working capital, capital expenditures, acquisitions (so long as certain conditions, including a specified funded debt-to-EBITDA ratio, are maintained) and other general corporate purposes.

Based in Salem, N.H., Standex manufactures products and services for industrial market segments. It organizes itself into five groups: electronics and hydraulics, food service equipment, air distribution products, engineering technologies and engraving.

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