FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / News / Read News

Print

JPMorgan Chase Agents $520MM Credit Facility for Global Brass and Copper

July 25, 2016, 08:04 AM
Filed Under: Metals and Mining

Global Brass and Copper Holdings, Inc. announced, that on July 18, 2016, it refinanced its debt structure by retiring its senior secured notes and entering into new asset-based revolving credit and long term debt (the “Term Loan B Credit Agreement”) agreements.

According to an 8-K report filed with the SEC, JPMorgan Chase is the administrative agent on the facilities with Bank of America, N.A. and Wells Fargo Bank, National Association, as co-syndication Agents

The ABL Facility is an asset-based revolving loan facility that provides for borrowings of up to the lesser of $200.0 million or the borrowing base both, in each case, less outstanding loans and letters of credit. 

Global Brass also entered into a $320 million Term Loan B Credit Agreement expiring July 18, 2023. While subject to a net leverage pricing grid, the initial interest rate in this facility is 5.25% as it is based on 425 basis points over LIBOR, which is subject to a 1% floor. This facility is prepayable and is subject to a total net debt leverage ratio test of less than 4.0 (tested quarterly), an excess cash flow sweep which steps down based on the total net debt leverage ratio, and a 1% annual principal amortization.

The company used the proceeds from the Term Loan B Credit facility, along with approximately $11.8 million of our own cash, to retire our $305.3 million senior secured notes facility, which bore interest at a rate of 9.5%, and for ongoing working capital and other general corporate needs. Based on current market conditions and interest rate environment, this refinancing represents a 425 basis point reduction in our borrowing rate, which equates to an approximate $12 million reduction in interest annually.

In a related transaction, the company also replaced its existing asset-based revolving credit facility by entering into a new ABL Facility that matures on July 19, 2021. This facility allows for borrowings up to the lesser of $200 million or the borrowing base. Along with a $200 million accordion feature, this facility bears interest at LIBOR plus 1.25% to 1.75%, depending on availability. At closing, no borrowings under the ABL Facility were outstanding.

Global Brass and Copper Holdings, Inc., through its wholly-owned principal operating subsidiary, Global Brass and Copper, Inc., is a leading, value-added converter, fabricator, processor and distributor of specialized non-ferrous products in North America.





Week's News



Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.