Stanley Black & Decker enters $1.5 billion 364-day replacement revolver

By Marisa Wong

Los Angeles, Sept. 8 – Stanley Black & Decker, Inc. entered into a syndicated 364-day credit agreement on Sept. 6 with Citibank, NA as administrative agent for a $1.5 billion revolving credit loan, according to an 8-K filing with the Securities and Exchange Commission.

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

Borrowings may be made in dollars or euros and bear interest at Euribor or term SOFR plus an applicable margin depending on debt ratings. The margin for Euribor loans ranges from 75 basis points to 125 bps, and the margin for term SOFR loans ranges from 85 bps to 135 bps.

The company must also pay a commitment fee of 3 bps to 10 bps, also based on ratings.

The company must repay all advances under the credit facility by the earlier of Sept. 4, 2024 or the date the commitments are terminated, at the election of the company, in whole.

The company may, however, convert all advances outstanding on the termination date into a term loan, subject to payment of a fee. The term loan would have to be repaid in full no later than the first anniversary of the termination date.

The credit agreement requires maintenance of an interest coverage ratio.

Loan proceeds may only be used for general corporate purposes. None of the proceeds from the credit facility were drawn down at closing.

In connection with its entry into the new 364-day credit agreement, the company terminated its 364-day credit agreement dated Sept. 7, 2022 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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