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JPMorgan Chase Arranges $125MM Credit Facility for SEACOR

March 22, 2019, 08:00 AM
Filed Under: Transportation

SEACOR Holdings Inc. entered into a Credit Agreement by and among the Company, as borrower, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Security Trustee for the Lenders, and JPMorgan Chase Bank, N.A., as Issuing Bank, pursuant to which the Lenders agreed, among other things, to make available to the Company a revolving loan facility in the principal amount of  up to $125,000,000 (as such amount may increase or decrease in accordance with the terms of the Credit Agreement). The principal amounts of loans will bear interest at either (i) a “Base Rate” plus a margin ranging from 0.75% to 2.00% depending on the Company’s maximum net funded debt ratio or (ii) interest periods of one, two, three or six months at an annual rate equal to LIBOR for the corresponding deposits of U.S. dollars, plus a margin ranging from 1.75% to 3.00% based on the Company’s maximum net funded debt ratio. Debt under the Credit Agreement will mature, and all outstanding amounts thereunder will be payable, on March 19, 2024. Repayment of obligations under the Credit Agreement is secured by a pledge over all assets of the Company and certain of its subsidiaries.

The Credit Agreement contains customary covenants for financings of this type, including (i) financial maintenance covenants requiring the Company to maintain, as of the last day of the applicable quarter, a minimum fixed charge coverage ratio of 1.25 to 1.00 and a maximum net funded debt ratio of 3.50 to 1.00, (ii) restrictive covenants limiting, among other things, the Company’s ability to incur liens and additional indebtedness and (iii) a leverage covenant measuring the aggregate collateral vessel value to the sum of the outstanding principal amount of all loans. The Credit Agreement also contains certain restrictions limiting the Company’s ability to pay dividends and distributions and to make certain investments. Upon the occurrence of certain events of default, the lenders have the right to accelerate the repayment of all amounts outstanding under the Credit Agreement.

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