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Titan Machinery obtains $350 million amended, restated credit facility
By Tali Rackner
Norfolk, Va., Nov. 2 – Titan Machinery Inc. amended, restated and extended its existing $362 million credit facility on Oct. 28 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The restated credit agreement provides for an up to $350 million secured credit facility, consisting of a $75 million credit facility, and a $275 million floorplan facility.
Outstanding debt under the credit agreement matures on the earlier of Oct. 28, 2020; and the date that is six months prior to maturity of certain existing senior convertible notes unless on that date, certain financial covenant tests are met.
Borrowings bear interest at a rate of one-, two- or three-month Libor plus 175 basis points to 250 bps. The unused line fee is 25 bps if the average aggregate usage is equal to or greater than 50% of the maximum credit amount; otherwise it is 37.5 bps.
The credit agreement does not require Titan to maintain financial covenants, except in the event that excess availability plus eligible cash collateral is less than 15% of the borrowing base, at which point the company is required to maintain a fixed charge coverage ratio of at least 1.1 times.
As of Oct. 28, the initial outstanding debt was approximately $85 million.
Wells Fargo, Bank of America, NA, PNC Bank, NA and Regions Bank are joint lead arrangers and bookrunners. Bank of America is the syndication agent; and PNC and Regions, are co-documentation agents.
Fargo, N.D.-based Titan Machinery owns and operates a network of agricultural and construction equipment stores in the United States.
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