CECO Environmental gets $65 million term loan, $90 million revolvers

By Angela McDaniels

Tacoma, Wash., Aug. 30 - CECO Environmental Corp. entered into a $155 million senior secured credit facility due Aug. 27, 2018 on Tuesday, according to a Friday filing with the Securities and Exchange Commission.

The facility includes a $65 million term loan, a $70.5 million dollar revolving credit facility and a $19.5 million multicurrency revolver.

BofA Merrill Lynch is the bookrunner. Bank of America, NA is the administrative agent, swingline lender and a letter-of-credit issuer. Fifth Third Bank is the syndication agent. JPMorgan Chase Bank, NA and RBS Citizens, NA are the documentation agents.

The facility has a $30 million accordion feature. It can be used to increase either the dollar revolver or the term loan.

The interest rate is Libor plus 150 basis points to 250 bps based on the company's consolidated leverage ratio.

The term loan will be repaid quarterly in 12 installments of $1,218,750 each, followed by four installments of $1,625,000 each, followed by three installments of $2,031,250 each, with the remaining balance paid at maturity.

The term loan is subject to mandatory prepayment under certain circumstances, including in connection the receipt of proceeds from certain debt issuances, asset sales and casualty events.

The company has granted a security interest in substantially all of its assets to secure the credit facility. The credit facility is guaranteed by the company's U.S. subsidiaries, and those guarantees are secured by a security interest on substantially all of the assets of those subsidiaries, including certain real property.

The company is required to maintain compliance with a consolidated leverage ratio and a consolidated fixed charge coverage ratio.

The company used the term loan and $52 million borrowed under the dollar revolver to finance the cash portion of the acquisition of Met-Pro Corp. and to repay some existing debt.

As of Wednesday, about $100 million was outstanding under the credit facilities.

In connection with the execution of the credit facility, the company terminated its existing amended and restated credit agreement with Fifth Third Bank.

CECO is a Cincinnati-based provider of air pollution control technology. Met-Pro is a Harleysville, Pa.-based provider of product recovery, pollution control, fluid handling and filtration solutions.

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