Steel Partners converts $200 million of revolver into term loan

By Wendy Van Sickle

Columbus, Ohio, Feb. 4 – Steel Partners Holdings LP entered into an amendment to its credit agreement dated Nov. 14, 2017 with PNC Bank, NA as administrative agent on Jan. 31 to convert $200 million of the revolving commitment into a term loan agreement, according to an 8-K filed with the Securities and Exchange Commission.

The transaction reduced the revolving commitment to $200 million.

The term loan has a 5% annual amortization and a final maturity of Nov. 14, 2022, consistent with that of the revolver.

The amendment also increased the maximum leverage ratio financial covenant to 4.25 times from 4 times. There is a step-up to 4.5 times for the four fiscal quarters following a material acquisition.

Additionally, the threshold for a material acquisition was reduced to $75 million from $100 million.

Revolver and term loan borrowings bear interest at Libor plus 125 basis points to 250 bps.

Handy & Harman Group Ltd., SPH Group Holdings LLC, Steel Excel Inc., API Americas Inc., iGo, Inc. and Cedar 2015 Ltd. are borrowers under the credit agreement.

PNC Capital Markets LLC, Citizens Bank, NA, SunTrust and Wells Fargo Bank, NA were the joint lead arrangers and syndication agents.

Branch Bank and Trust Co., Fifth Third Bank and Royal Bank of Canada were the documentation agents.

The New York-based diversified holding company has businesses in industrial products, energy, defense, supply chain management and logistics, banking, food products and services, oilfield services, sports, training, education and the entertainment and lifestyle industries.

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