| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for West Pharmaceutical Services, Inc. > News item |
West Pharmaceutical enters into new $300 million five-year revolver
By Wendy Van Sickle
Columbus, Ohio, Oct. 19 – West Pharmaceutical Services, Inc. entered into a new $300 million five-year senior unsecured revolving credit facility on Thursday, according to an 8-K filed with the Securities and Exchange Commission.
The facility has a $30 million sublimit for swingline loans and a $30 million sublimit for standby letters of credit. There is also a $100 million accordion feature.
The facility matures on Oct. 14, 2020.
Initial interest is Libor plus 112.5 basis points. Interest can range from Libor plus 100 bps to 175 bps, depending on total leverage ratio. The commitment fee is initially 17.5 bps and can range from 15 bps to 25 bps.
PNC Capital Markets, LLC, acted as lead arranger and bookrunner; PNC Bank, NA as administrative agent; Wells Fargo Bank, NA and U.S. Bank NA as syndication agents; and Citizens Bank of Pennsylvania and TD Bank, NA as documentation agents.
Some proceeds were used to repay and terminate the company’s existing $300 million credit facility dated april 27, 2012. The company did not incur any penalties related to the termination of that facility.
Additional proceeds may be used for working capital, capital expenditures and other general corporate purposes, including to pay all or a portion of the purchase price for permitted acquisitions and repurchases of capital stock of the company.
The facility includes financial covenants limiting the company’s total consolidated debt to its modified EBITDA to 3.5 times and requiring a minimum consolidated EBIT to interest expense ratio of 2.5 times.
Also, the company’s amount of outstanding priority debt must not exceed 25% of its consolidated capitalization.
West Pharmaceutical is a Lionville, Pa.-based manufacturer of components and systems for injectable drug delivery.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.