WD-40 amends credit terms with Bank of America, extends until 2020

By Susanna Moon

Chicago, May 18 – WD-40 Co. amended its unsecured credit agreement on May 13 with Bank of America, NA, extending the term until May 13, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also increases the revolving commitments to up to $150 million from up to $125 million.

The commitment fee will rise to 12.5 basis points from 12 bps.

The company said it may enter into an autoborrow agreement with Bank of America for the automatic advance of revolving loans in dollars.

The second amendment also revises the definition of consolidated EBITDA to include the add-back of non-cash stock-based compensation to consolidated net income when arriving at consolidated EBITDA.

The pre-existing financial covenant for consolidated EBITDA required the company to maintain minimum consolidated EBITDA of $40 million, measured on a trailing 12-month basis, at each reporting period. This financial covenant was replaced with the following financial covenants:

• The consolidated leverage ratio cannot be greater than 3 to 1; and

• The consolidated interest coverage ratio cannot be less than 3 to 1.

Proceeds will be used for the company’s stock repurchases and for general working capital needs.

WD-40 is a San Diego maker of lubricants, hand cleaners and household cleaners.

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