Actuant Announces Completion of Debt Refinancing
April 02 2019 - 8:30AM
Business Wire
Actuant Corporation (NYSE:ATU) today announced completion of a
new five-year $600 million senior credit facility, comprised of a
$400 million revolving line of credit and a fully-drawn $200
million term loan.
Proceeds from the refinancing will be used to retire the
existing $300 million term loan due May 2020, of which $200 million
was outstanding at the end of the company’s second quarter. The new
facility includes a reduction in pricing, expansion of the
revolving credit facility from $300 to $400 million, and a March
2024 maturity date. Borrowing capacity and outstanding debt will
not change as a result of this new agreement.
"The refinancing of the credit facility creates a longer-term
capital structure with greater flexibility to support the company's
strategic plan, including the divestiture of the EC&S segment
and continued disciplined focus on our capital allocation
priorities," said Rick Dillon, Actuant’s Executive Vice President
and Chief Financial Officer. “We are pleased to have the strong
support of our bank partners as we progress through our
transformation into a pure-play premier industrial tools and
services company.”
The new credit facility contains financial covenants that are
consistent with the prior facility, with enhancements that improve
overall liquidity. The facility provides the option for future
expansion through a $300 million accordion on the revolver. The
facility will bear interest initially at a rate of LIBOR + 1.625
bps.
JPMorgan Chase Bank, N.A. acted as Administrative Agent on the
refinancing along with Wells Fargo Bank, N.A., Bank of America,
N.A., SunTrust Bank, and PNC Bank, N.A., as Co-Syndication Agents
and BMO Harris Bank, N.A., as Documentation Agent.
About Actuant
Corporation
Actuant Corporation is a diversified industrial company serving
customers from operations in more than 30 countries. The Actuant
businesses are leaders in a broad array of niche markets including
branded hydraulic tools and solutions, specialized products and
services and highly engineered position and motion control systems.
The Company was founded in 1910 and is headquartered in Menomonee
Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU.
For further information on Actuant and its businesses, visit the
Company's website at www.actuant.com.
Safe Harbor Statement
Certain of the above comments represent forward-looking
statements made pursuant to the provisions of the Private
Securities Litigation Reform Act of 1995. Management cautions that
these statements are based on current estimates of future
performance and are highly dependent upon a variety of factors,
which could cause actual results to differ from these estimates.
Among other risks and factors, Actuant’s results are subject to
general economic conditions, variation in demand from customers,
the impact of geopolitical activity on the economy, continued
market acceptance of the Company’s new product introductions,
uncertainties with respect to the timing and terms of any
disposition, the successful integration of acquisitions,
restructuring, operating margin risk due to competitive pricing and
operating efficiencies, supply chain risk, material and labor cost
increases, tax reform, foreign currency fluctuations and interest
rate risk. See the Company’s Form 10-K for the fiscal year ended
August 31, 2018 filed with the Securities and Exchange Commission
for further information regarding risk factors. Actuant disclaims
any obligation to publicly update or revise any forward-looking
statements as a result of new information, future events or any
other reason.
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Actuant CorporationRichard
Roman262-293-1985richard.roman@actuant.com
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