Atkore International extends $325 million credit facility to 2023

By Rebecca Melvin

New York, Sept. 1 – Atkore International Group Inc. subsidiary Atkore International Inc. (AII) amended its $325 million asset-based credit facility to extend its maturity to Aug. 28, 2023, according to an 8-K filing with the Securities and Exchange Commission.

The amounts under the amended and restated credit facility, with Wells Fargo Bank NA as swingline lender, issuing lender, administrative agent and collateral agent, are available in U.S. and Canadian dollars, with other permitted currencies to be agreed as necessary.

AII is entitled to request additional asset-based revolving credit commitments or asset-based term loans under a new term loan facility to be included in the amended ABL credit facility, which shares in the borrowing base, in an amount of up to $150 million.

The amended facility provides the right for individual lenders to extend the maturity date of their commitments and loans upon request and without the consent of any other lender.

The facility’s U.S. dollar-denominated loans bear interest at Libor plus 175 bps to 225 bps based on available loan commitments, and the facility’s Canadian dollar-denominated loans bear interest at the Canadian Bankers’ Acceptance Rate plus 175 bps to 225 bps. The commitment fee is 37.5 bps.

The company’s revolving credit loans are required to be prepaid if the amount exceeds the applicable borrowing base and commitments under the amended ABL credit facility. All obligations are guaranteed by Atkore International Holdings, Atkore International Group’s direct wholly-owned subsidiary, and each direct and indirect wholly owned material U.S. restricted subsidiary of Atkore International and certain other restricted subsidiaries, and Columbia-MBF Inc., a corporation formed by amalgamation under the laws of Canada.

In connection with AII causing Columbia-MBF to become a subsidiary guarantor for the amended ABL facility, AII also caused Columbia-MBF to become a subsidiary guarantor for the amended and restated first-lien term loan facility maturing in December 2023.

The first-lien term loan facility has priority over all real property, plant and equipment, intellectual property and capital stock of any U.S. subsidiary and any documents or instruments evidencing the foregoing assets. The ABL credit facility has first priority over cash and cash equivalents, accounts receivable, inventory and other documents and instruments evidencing the foregoing assets.

There are no financial covenants included in the amended ABL credit agreement, other than a springing minimum fixed charge coverage ratio of at least 1 to 1, which will be tested when specified availability is less than required.

Atkore is a Harvey, Ill.-based electrical raceway solutions provider.

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