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Libbey Announces New $440MM Senior Secured Credit Facility

April 10, 2014, 07:37 AM
Filed Under: Manufacturing


Libbey Inc. announced that its wholly owned subsidiary Libbey Glass Inc. has entered into a $440 million senior secured term loan B facility with a maturity date of April 9, 2021. The Term Loan B Facility will bear interest at a rate of LIBOR plus 3.00 percent, subject to a LIBOR "floor" of 0.75 percent, and was issued with an original issue discount of 0.25 percent.

Libbey Glass used the net proceeds from the Term Loan B Facility, cash on hand and borrowings on its existing revolving credit facility to purchase $360 million in aggregate principal amount of Libbey Glass' 6.875% Senior Secured Notes due 2020 (the "Existing Notes") pursuant to its previously announced tender offer (the "Tender Offer"); to redeem the remaining $45.0 million in aggregate principal amount outstanding of the Existing Notes at a redemption price of 103%, plus any applicable accrued and unpaid interest; and to pay related fees and expenses.

Based on current LIBOR rates, Libbey Glass expects the Term Loan B Facility to initially generate savings in excess of $10 million in annual interest expense.

The company also announced today the execution of an amendment to its existing revolving credit facility. The amendment extends the term of the revolving credit facility to April 9, 2019, reduces the commitment fee rate to 0.25 percent and modifies certain payment restrictions and permitted indebtedness terms.

Based in Toledo, Ohio, and since 1888, Libbey Inc. has been the largest manufacturer of glass tableware in the western hemisphere and one of the largest glass tableware manufacturers in the world. It supplies products to foodservice, retail, industrial and business-to-business customers in over 100 countries, and it is the leading manufacturer of tabletop products for the U.S. foodservice industry.







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