Chart Industries details restated $450 million multicurrency revolver

By Angela McDaniels

Tacoma, Wash., Nov. 3 – Chart Industries, Inc. released more information about its amended and restated credit agreement in an 8-K filing with the Securities and Exchange Commission on Monday.

The restated credit facility provides for a $450 million senior secured multicurrency revolving credit facility due Oct. 29, 2019.

As previously reported, the restated credit facility combines the company’s prior $65.6 million term loan and revolver into a single facility, increases its size, extends the maturity from April 2017 and lowers the borrowing costs by up to 50 basis points.

The initial interest rate is Libor plus 150 bps. The margin over Libor ranges from 150 bps to 275 bps.

The initial commitment fee is 25 bps. It ranges from 25 bps to 40 bps.

An accordion feature allows the company to add up to $200 million of term loans or additional revolving credit commitments.

The restated credit facility includes a $25 million sublimit for swingline loans and a $100 million sublimit for letters of credit. It provides for up to $100 million of foreign-currency borrowings and up to $100 million of advances to two of the company’s subsidiaries, Chart Industries Luxembourg Sarl and Chart Asia Investment Co. Ltd.

At closing, there were $30.7 million of letters of credit issued and $65.6 million principal amount of borrowings outstanding under the restated credit facility.

J.P. Morgan Securities LLC is the bookrunner and lead arranger. JPMorgan Chase Bank, NA is the administrative agent. Bank of America, NA, Fifth Third Bank, HSBC USA, NA, Citizens Bank, NA, U.S. Bank NA and Wells Fargo Bank, NA are the syndication agents.

The company and its domestic material subsidiaries continue to guarantee the credit facility, which continues to be secured by a first-priority perfected security interest in and lien on existing and future personal and material real property of the company and each guarantor and a pledge of, and a first perfected security interest in, 100% of the equity interests of each of the company’s existing and future material domestic subsidiaries and 65% of the equity interests of first-tier foreign subsidiaries owned by the company and each guarantor, subject to certain restrictions.

The financial covenants require the company to

• Maintain liquidity at least equal to the principal amount of the company’s 2% convertible senior subordinated notes due 2018 and any future similar convertible note issuances during the six-month period immediately prior to the maturity of the convertibles and any period when the holders of have the option to put the convertibles;

• Maintain an interest coverage ratio of not less than 3 to 1; and

• Maintain a leverage ratio of no greater than 3.25 to 1.0. This ratio can be relaxed to 3.75 to 1.0 for a one-year period on up to two occasions in connection with certain acquisitions or plant expansions costing more than $100 million.

Garfield Heights, Ohio-based Chart Industries is a manufacturer of highly engineered equipment used in the production, distribution, storage and end-use of hydrocarbon and industrial gases.

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