Crane enters into $300 million term loan, $500 million revolver

By Wendy Van Sickle

Columbus, Ohio, March 20 – Crane Co. entered into a credit agreement providing for a $300 million three-year senior unsecured term loan and a $500 million five-year revolver on March 17 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

According to a news release, parent company Crane Holdings, Co., which will be renamed Crane NXT, Co. after a planned separation, also received a new financing, which includes a $500 million five-year revolver and $350 million three-year term loan, but further details were not provided.

Crane financing

Funding is expected to be available prior to, or substantially concurrently with, consummation of parent company Crane Holdings’ previously announced plan to spin off its Aerospace & Electronics, Process Flow Technologies and Engineered Materials segments to its stockholders.

U.S. dollar borrowings will be priced at SOFR plus a credit spread adjustment of 10 basis points, euro borrowings will be based on Euribor and Canadian dollar will be based on CDOR. In each case there will be a margin ranging from 150 bps to 225 bps, based on the company’s consolidated total net leverage ratio.

The revolver will have a commitment fee on unused portions, also based on consolidated total net leverage ratio, that will range from 20 bps to 35 bps.

The company will be required to repay borrowings under the term facility on the last day of each fiscal quarter, starting with the last day of the first full fiscal quarter ending after the date on which all of the conditions for the lenders to make loans are complete, in an amount equal to 0.625% of the total principal amount of the term loans made on the availability date for the first four full fiscal quarters and, thereafter, 1.25% of the total principal amount.

The new facilities are intended to support Crane’s plan to separate into two independent and simplified businesses, which is expected to close on April 3.

The company must maintain a consolidated total net leverage ratio of no greater than 3.5 to 1, which level may, at the company’s option, be increased by 0.5 upon the consummation of certain permitted acquisitions for certain periods, and a consolidated interest coverage ratio of no greater than 3 to 1.

JPMorgan, BofA Securities, Inc., Goldman Sachs Bank USA, TD Securities (USA) LLC, U.S. Bank NA and Wells Fargo Bank, NA are the lead arrangers and bookrunners.

Bank of America, NA, Goldman Sachs, Toronto-Dominion Bank, New York Branch, U.S. Bank and Wells Fargo are the syndication agents.

Citibank, NA, Citizens Bank, NA, HSBC Bank USA, NA and Manufacturers and Traders Trust Co. are the documentation agents.

Stamford, Conn.-based Crane is a manufacturer of highly engineered industrial products.

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