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JPMorgan Chase Agents Facility Increase for Chart Industries

October 30, 2014, 07:23 AM
Filed Under: Manufacturing

Chart Industries, Inc. has amended its senior secured credit facility. The amendment combines the company's prior term loan and revolving credit facility into a single revolving credit facility and increases it by $150 million, up to $450 million, extends it two years to October 2019, and lowers the borrowing costs under the agreement.

As a result of the amendment, the company's prior outstanding term loan of $65.6 million has been transferred to the revolving credit facility. The amended facility also includes an expansion option permitting the company to add up to an aggregate of $200 million in term loans or revolving credit commitments from its existing lenders or new lenders. Loans under the facility bear interest at LIBOR or Prime, plus a margin that varies with the company's net debt to EBITDA ratio, which should result in effective interest rates 0.5% below the company's prior credit facility. The prior senior credit facility was scheduled to mature in April 2017.

Under the terms of the amended facility, significant financial covenants include a maximum net debt to EBITDA ratio of 3.25 and a minimum interest coverage to EBITDA ratio of 3.0, which are the same that applied under the prior facility. However, the company is able to increase its leverage ratio to 3.75 for 12 months, if necessary, following an acquisition or plant expansion of $100 million or greater. The amended credit facility was arranged and syndicated by J. P. Morgan Securities LLC. JPMorgan Chase Bank, N.A. will continue to act as administrative agent.

"This amended agreement gives us additional liquidity and flexibility to continue to achieve our growth plans, while maintaining pricing that is representative of our sound balance sheet and strong credit quality," stated Michael Biehl, Executive Vice President and Chief Financial Officer. "We appreciate the continued partnership and support of our group of lenders in completing this amended five-year facility."

Chart is a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The majority of Chart's products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, the largest portion of which are energy-related.

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