Delco Remy obtains $250 million credit facility

By Sara Rosenberg

New York, Oct. 8 - Delco Remy International Inc. obtained an amended and restated credit agreement, providing for a $250 million credit facility. Congress Financial Corporation is the administrative agent and US collateral agent, and Wachovia Bank is the documentation agent.

The facility consists of a $60 million term loan and a $190 million secured asset-based revolver.

The term loan carries interest at Prime plus 450 basis points with an 8.5% floor.

For the revolver, the interest rate is Libor plus 275 basis points if monthly excess availability under the revolver is $50 million or more, Libor plus 300 basis points if availability is equal to or greater than $25 million and less than $50 million and Libor plus 325 basis points if availability is less than $25 million, according to a filing with the Securities and Exchange Commission.

Proceeds from the term loan were used to reduce outstanding debt under the existing asset-based revolver, increasing the company's total borrowing capacity under its senior credit facility by approximately $60 million.

Delco Remy is an Anderson, Ind. designer, manufacturer, remanufacturer and distributor of electrical, drivetrain/powertrain and related products and core exchange service for automobiles and trucks.

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