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Dover enters $1 billion five-year revolver to replace 2011 facility
By Marisa Wong
Morgantown, W.Va., Nov. 12 – Dover Corp. entered into a $1 billion five-year unsecured revolving credit facility with a syndicate of 13 banks on Nov. 10, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Chase Bank, NA is the administrative agent.
The credit facility replaces a similar credit facility with a remaining term of one year. The existing $1 billion revolver dated Nov. 11, 2011 was terminated upon completion of the new facility.
Commitments may be increased by up to an additional $500 million during the term of the new credit agreement.
Up to $250 million will be available for the issuance of letters of credit.
The facility matures on Nov. 10, 2020.
Dollar-denominated borrowings bear interest at Libor multiplied by the statutory reserve rate, and non-dollar-denominated borrowings bear interest at Libor plus an applicable margin ranging from 58 basis points to 100 bps, depending on the company’s senior unsecured debt rating. Loans may also bear interest at Euribor or CDOR plus the applicable margin.
In addition, the company will pay a facility fee ranging from 4.5 bps to 12.5 bps, depending on the senior debt rating.
The credit agreement requires the company to maintain a minimum interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.00 to 1.00.
The credit agreement is intended to be used primarily as liquidity back-up for the company’s commercial paper program, the filing noted.
The manufacturer of industrial, engineering, fluid management and electronic technical components and equipment is based in Downers Grove, Ill.
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