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Bank of America Closes Amendment to ABM’s Credit Facility

June 03, 2020, 09:30 AM
Filed Under: Industry News
Related: Bank of America

ABM, a leading provider of facility solutions, announced it has successfully completed an amendment to its senior, secured credit agreement.  The Company is a party to a syndicated credit facility comprised of an $800 million revolving line of credit and an $800 million amortizing term loan, both of which mature on September 1, 2022.  On March 24, 2020, as a precautionary measure, the Company elected to fully draw on its remaining revolving line of credit adding approximately $300 million of capacity to its balance sheet.  As of April 30, 2020, the Company had in excess of $500 million on its balance sheet.

The amendment is expected to enhance financial flexibility as the Company continues to navigate the COVID-19 pandemic, in addition to addressing a scheduled stepdown to its maximum total leverage ratio by July 31, 2020.  Among other aspects, the amendment revises certain covenants under its existing credit agreement, including changes to maximum permitted total net leverage, including the ability to net up to $100 million of cash, and decreasing the minimum fixed charge coverage ratio.  The amendment also preserves the Company’s ability to consider dividends, while limiting share purchases and mergers and acquisitions until leverage is below a certain threshold.

D. Anthony Scaglione, Executive Vice President and Chief Financial Officer of ABM Industries, commented, “I would like to thank our entire bank syndicate for their continued support and confidence in ABM.  I also want to recognize our ABM team members as we worked diligently to complete this transaction.  We have a bright future ahead and this amendment will further enable us to achieve our goals while navigating these unprecedented times.”

Susie A. Kim, Vice President of Investor Relations and Treasurer, added, “We are pleased with the overwhelming partnership across our bank group and appreciate the increased flexibility this amendment affords us over the short and long term.  This amendment, coupled with ABM’s flexible and resilient business model, will benefit us as we manage our business strategically through the COVID-19 pandemic and into our future.”

Bank of America, N.A. acted as Administrative Agent.

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