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CECO Environmental gets restated $170 million five-year term loan
By Angela McDaniels
Tacoma, Wash., Sept. 3 – CECO Environmental Corp. entered into an amended and restated credit agreement on Thursday that provides for a $170 million five-year senior term loan and a $80 million five-year senior revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement has a $50 million accordion feature.
The initial interest rate is Libor plus 275 basis points. The margin over Libor ranges from 200 bps to 300 bps based on CECO’s consolidated leverage ratio.
Bank of America Merrill Lynch is the lead arranger and bookrunner. Bank of America, NA is the administrative agent, swingline lender and a letter of credit issuer. Citizens Bank of Pennsylvania and JPMorgan Chase Bank, NA are the syndication agents. Fifth Third Bank is the documentation agent.
The amended and restated credit agreement amends CECO’s existing credit agreement dated as of Aug. 27, 2013 with Bank of America as administrative agent. That credit agreement provided for a $65 million term loan, a $70.5 million dollar revolving credit facility and a $19.5 million multicurrency revolver. The interest rate was Libor plus 150 bps to 250 bps.
Also on Thursday, the company completed its acquisition of PMFG, Inc.
On May 3, the company entered into a commitment letter with Bank of America. The letter provided for an additional $27.1 million senior secured amortizing term loan and an amendment to the Aug. 27, 2013 credit agreement to allow for the merger and replacement facilities to refinance the credit facilities under the credit agreement if the amendment and add-on term loan could not be completed.
CECO is an environmental, energy and fluid handling technology company based in Cincinnati. PMFG is a Dallas-based provider of custom engineered systems and products used to deliver energy.
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