EnerSys expects to launch $375 million credit facility around June 4

By Sara Rosenberg

New York, May 20 - EnerSys plans to launch the syndication of its proposed $375 million credit facility (Ba1/BBB-) on or about June 4, according to a 424B3 filed late Monday with the Securities and Exchange Commission.

The facility consists of a $125 million five-year revolver and a $250 million six-year senior secured term loan A.

Security is a first-priority interest in substantially all of the company's assets and the assets of the subsidiary guarantors, but limited to 65% of the voting stock of any foreign subsidiary.

The credit facility is expected to close in June.

Proceeds will be used to refinance the company's existing credit facility, which includes a roughly $351.4 million term loan B and a $100 million revolver that has about $12.3 million drawn.

Helping to repay some of the term loan B debt will be proceeds from an about $150 million convertible senior notes offering.

On May 16, the company amended its existing credit facility to allow for the convertibles offering. Bank of America is the administrative agent on the loan, Morgan Stanley is syndication agent and Lehman is documentation agent.

EnerSys is a Reading, Pa.-based manufacturer, marketer and distributor of industrial batteries.

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