Stanley Black & Decker enters $1 billion 364-year revolving loan

By Wendy Van Sickle

Columbus, Ohio, Sept. 15 – Stanley Black & Decker, Inc. entered into a $1 billion 364-day revolving credit loan on Sept. 9, according to an 8-K filing with the Securities and Exchange Commission.

Citibank, NA is the administrative agent. Citibank, JPMorgan Chase Bank, NA, BofA Securities, Inc. and Wells Fargo Securities, LLC are the lead arrangers and bookrunners. JPMorgan, Bank of America, NA and Wells Fargo Bank, NA are the syndication agents.

Borrowings may be made in dollars or euros.

The interest rate is Libor plus a margin of 75 basis points to 137.5 bps, depending on the company’s ratings.

The commitment fee ranges from 3 bps to 12 bps, also depending on the company’s ratings.

The company has the option to convert all advances outstanding on the maturity date, Sept. 8, 2021, into a one-year term loan.

Proceeds may be used for general corporate purposes.

The revolver was not drawn at closing.

The credit agreement requires the maintenance of an interest coverage ratio and contains a limitation on creating liens on certain property of the company and its subsidiaries; a restriction on mergers, consolidations and sales of substantially all of the assets of the company or its subsidiaries; and a restriction on entering into certain sale-leaseback transactions.

In connection with its entry into the new revolver, the company terminated its Sept. 11, 2019 364-day credit agreement with Citibank as administrative agent.

Stanley Black & Decker is a New Britain, Conn.-based maker of hand tools, power tools and accessories.

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