Stratasys enters $250 million five-year revolving credit facility

By Marisa Wong

Madison, Wis., Nov. 8 - Stratasys Ltd. and wholly owned subsidiary Stratasys International Ltd. entered into a credit agreement for an up to $250 million five-year revolving credit facility that permits up to $25 million of swingline loans, according to a 6-K filing with the Securities and Exchange Commission.

The companies entered into the credit agreement on Thursday with Bank of America, NA as administrative agent and swingline lender, BofA Merrill Lynch as lead arranger and bookrunner, Citibank, NA and HSBC Bank USA, NA as co-syndication agents and Silicon Valley Bank as documentation agent.

Stratasys has the right to make up to three requests to increase total commitments under the revolver. The total amount for these requests is capped at $75 million.

The facility matures on Nov. 7, 2018.

Revolving loans under the credit agreement, other than swingline loans, will bear interest at Libor plus a margin based on the company's consolidated leverage ratio for the previous rolling four quarters. The margin ranges from 162.5 basis points to 262.5 bps.

The company must also pay a commitment fee on the unused portion of the revolver of 37.5 bps to 42.5 bps, depending on the leverage ratio.

Under the credit agreement, Stratasys must maintain financial covenants including a maximum leverage ratio, a minimum consolidated fixed-charge coverage ratio and minimum consolidated EBITDA.

Borrowings are available for general corporate purposes.

All of the obligations under the credit agreement are guaranteed by the company and its U.S. and Israeli subsidiaries, excluding, through the end of 2014, Baccio Corp. (formerly known as Cooperation Technology Corp., or MakerBot) and its subsidiaries.

Stratasys manufactures 3D printers and has headquarters in Eden Prairie, Minn., and Rehovot, Israel.

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