Stanley Black & Decker gets $2 billion revolving credit facilities

By Angela McDaniels

Tacoma, Wash., July 3 - Stanley Black & Decker, Inc. entered into a $1.5 billion revolving credit facility due June 27, 2018 on June 27, according to an 8-K filing with the Securities and Exchange Commission.

Citibank, NA is the administrative agent. Citigroup Global Markets Inc., Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead arrangers and bookrunners. Bank of America, NA is the syndication agent.

The interest rate is Libor plus the credit default rate spread, subject to a minimum rate and a maximum rate. The credit default rate spread is the lower of (a) the company's credit default swap mid-rate spread interpolated to the latest extended maturity date and (b) the company's five-year credit default swap mid-rate spread.

The minimum rate ranges from 0.25% to 0.75%, and the maximum rate ranges from 0.875% to 1.5%. Both depend on the company's ratings.

The commitment fee ranges from 7 basis points to 15 bps depending on the company's ratings.

Up to $400 million of the borrowings may be made in euros or pounds sterling by some designated subsidiaries.

The company has the right to request prior to June 27, 2014 and prior to June 27, 2015 that the maturity date be extended for one year.

No borrowings were outstanding at closing.

The company may be required to prepay any borrowings if a change of control occurs.

The credit agreement contains covenants that include, among other things, the maintenance of an EBITDA interest covenant ratio.

364-day revolver

The company also entered into a $500 million 364-day revolving credit facility on June 27.

Stanley Black & Decker said the 364-day revolver contains terms that are substantially similar to the terms of the five-year revolver.

The five-year revolver replaces the company's four-year credit agreement dated March 11, 2011, and the 364-day revolver replaces its 364-day credit agreement dated July 13, 2012. Citibank was the administrative agent for both.

The New Britain, Conn.-based company makes hand tools, power tools and accessories.

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