Chart Industries enters into $200 million senior secured facility

By Jennifer Chiou

New York, May 19 - Chart Industries Inc. and its subsidiary Chart Industries Luxembourg Sarl entered into a $200 million senior secured credit facility with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The five-year credit facility consists of a $65 million term loan and an up to $135 million multicurrency revolving credit facility.

The credit facility includes an accordion feature, which allows the company to increase the loan by up to an additional $100 million.

Proceeds of the term loan, together with $15 million in cash, were used to repay the $80 million term loan under the company's prior facility.

The new facility, which expires on May 18, 2015, replaces Chart's prior senior secured credit facility. The company terminated its $115 million revolver, which was to expire on Oct. 17, 2010, and repaid the existing term loan, which was to expire on Oct. 17, 2012.

The revolver under the new loan includes a $25 million sublimit for the issuance of swingline loans and a $50 million sublimit for letters of credit. At closing, there was $21.8 million in letters of credit issued but no other borrowings outstanding under the revolver.

Borrowings will bear interest at Libor plus 275 basis points, with possible future spreads ranging from Libor plus 200 bps to 350 bps.

The initial commitment fee is 37.5 bps.

The 8-K said that there are also financial covenants that require Chart to maintain, including the following:

• An interest coverage ratio of not less than 3.0 to 1;

• A leverage ratio of no greater than 3.25 to 1; and

• A limit of annual consolidated capital expenditures of no more than $25 million, plus up to $12.5 million of total unspent carryovers from the two most recent prior years.

Chart Industries is a Garfield Heights, Ohio-based manufacturer of hydrocarbon and industrial gases.

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