HC2 Holdings gets $110 million revolver, $110 million term loan

By Wendy Van Sickle

Columbus, Ohio, May 27 – HC2 Holdings, Inc. subsidiary DBM Global entered into a credit agreement providing for a $110 million three-year senior secured revolver and a $110 million five-year senior secured term loan, according to an 8-K filing with the Securities and Exchange Commission.

The proceeds are intended for use in the company’s $145 million purchase of Banker Steel Holdco LLC.

Borrowings under the revolver bear interest at the Prime rate minus 85 basis points to 160 bps, depending on senior funded debt to EBITDA ratio. Initially, revolver borrowings bear interest at the Prime rate minus 110 bps.

The term loan bears interest at 3.25% per annum.

There is a minimum fixed charge coverage ratio of 1.2x and a maximum senior funded debt to EBITDA ratio of 2.5x.

UMB Bank, NA is the administrative agent, and BMO Harris Bank NA is the syndication agent.

HC2, a diversified holding company, is based in New York. Banker Steel is a Lynchburg, Va., company that provides fabricated structural steel and erection services to the commercial and industrial construction market.

© 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.