Arcosa gets $400 million five-year revolver upon spinoff from Trinity

By Wendy Van Sickle

Columbus, Ohio, Nov. 1 – Arcosa, Inc. entered into a credit agreement on Nov. 1 providing for a $400 million five-year unsecured revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement has a $100 million sublimit for letters of credit and a $200 million accordion feature.

Borrowing bear interest at Libor plus a margin that varies based on Arcosa’s leverage and is initially 125 basis points. The margin can range from 125 bps to 200 bps.

The commitment fee is initially 20 bps and can range from 20 bps to 35 bps, based on the average daily unused portion of the revolver.

JPMorgan Chase Bank, NA and Bank of America Merrill Lynch are the joint bookrunners and lead arrangers. JPMorgan is the administrative agent.

Bank of America, NA is syndication agent, and Branch Banking and Trust Co., SunTrust Bank and Wells Fargo Bank, NA are the co-documentation agents.

At closing, there were no outstanding borrowings and about $19.9 million letters of credit issued under the credit agreement.

The maturity date Nov. 1, 2023.

The credit agreement was entered in conjunction with Arcosa’s separation from Trinity Industries, Inc. Borrowings may be used for working capital and general corporate purposes.

Dallas-based Arcosa is a growth-oriented manufacturer of infrastructure-related products and services in construction, energy and transportation markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.