Chart Industries upsizes, extends revolving credit facility to 2019

By Tali Rackner

Norfolk, Va., Oct. 30 – Chart Industries, Inc. said it combined its prior term loan and revolving credit facility into a single revolving credit facility and increased it to $450 million, according to a press release.

The Thursday amendment to Chart’s senior secured credit facility also extends the maturity to October 2019 from April 2017 and lowers the borrowing costs.

As a result of the amendment, the company's prior outstanding $65.6 million term loan was transferred to the revolving credit facility. There is an option to add up to a total of $200 million of term loans or revolving credit commitments.

Loans bear interest at Libor plus a margin that varies with the company's net debt to EBITDA ratio, which should result in effective interest rates 50 basis points below the company's prior credit facility, the release said.

Significant financial covenants under the facility include a maximum net debt to EBITDA ratio of 3.25 times and a minimum interest coverage to EBITDA ratio of 3 times, which are the same that applied under the prior facility. However, the company is able to increase its leverage ratio to 3.75 times for 12 months, if necessary, following an acquisition or plant expansion of $100 million or greater.

The amended credit facility was arranged and syndicated by J.P. Morgan Securities LLC. JPMorgan Chase Bank, NA will continue to act as administrative agent.

Garfield Heights, Ohio-based Chart Industries is a manufacturer of highly engineered equipment used in the production, distribution, storage and end-use of hydrocarbon and industrial gases.

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