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JPMorgan Chase Arranges Debt Refinancing for Thermon

September 30, 2021, 07:00 AM
Filed Under: Specialty Industries

Thermon Group Holdings entered into an amended and restated Credit Agreement with JPMorgan Chase Bank and certain other lenders. Under the Credit Agreement, Thermon's existing $140 million term loan B and revolving credit facility were replaced with an $80 million senior secured US term loan A, a CAD76 million senior secured Canadian term loan A and a $100 million revolving credit facility. The proceeds of the refinancing were used to repay Thermon's existing revolver and term loan B.

The Credit Agreement was arranged by JPMorgan Chase Bank, N.A. and BMO Capital Markets Corp. The revolver and US term loan A are currently priced at adjusted LIBOR plus 162.5 basis points and the Canadian term loan A is currently priced at CDOR plus 162.5 basis points. The new facilities are subject to a consolidated leverage ratio covenant not to exceed 3.75:1 for the first four fiscal quarters after the closing, decreasing to 3.50:1 thereafter, and they also include an acquisition holiday.

"We are pleased to announce this refinancing and the estimated $4 million of annual cash interest expense savings while maintaining the strength of our balance sheet and flexibility to continue investing in the growth of our business," said Kevin Fox, Senior Vice President and Chief Financial Officer of Thermon. "We are thankful for the relationship with our banking partners in completing this new facility and believe this will help achieve our goal of doubling the business in the next five years through investments in diversification, developing markets and technology enabled maintenance."

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