Briggs & Stratton gets $625 million five-year revolver

By Angela McDaniels

Tacoma, Wash., Sept. 27 – Briggs & Stratton Corp. entered into a new $625 million revolving credit facility due 2024, according to a company news release.

Capacity is subject to a borrowing base.

JPMorgan Chase Bank, NA, Bank of America, NA, Bank of Montreal and Wells Fargo Bank, NA are the lead arrangers, and JPMorgan is the administrative agent.

The interest rate is Libor plus a spread that depends on the company’s trailing-12-month consolidated fixed charge coverage ratio. The company projects that fiscal 2020 consolidated interest expense will be about $34 million.

The new revolver contains a springing fixed charge coverage financial covenant that must be met if borrowings exceed a set percentage of the borrowing base.

The new revolver is secured by some of the company's and its subsidiaries' working capital and other assets and is an increase from the company’s previous facility of $500 million.

“This new facility gives us added flexibility to fund seasonal borrowing needs and for general corporate purposes as we work to de-lever and strengthen the balance sheet,” senior vice president and chief financial officer Mark Schwertfeger said in the news release.

“While borrowing under the new facility is variable, based on the aggregate amount of underlying assets, we are encouraged that the larger size provides us a foundation for our capital structure, especially as we look to ultimately retire the senior notes that mature in December 2020.”

Briggs & Stratton is based in Milwaukee and makes gasoline engines for outdoor power equipment.

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