Manitowoc reveals more details of new $1.05 billion credit facilities

By Angela McDaniels

Tacoma, Wash., Jan. 8 - The interest rate for Manitowoc Co., Inc.'s new $200 million seven-year term loan B is Libor plus 250 basis points, according to an 8-K filing with the Securities and Exchange Commission.

In December, a market source said that the offer price is par and that the loan has 101 soft call protection for one year and a 0.75% Libor floor.

The company entered into an amended and restated credit agreement on Monday that provides for $1.05 billion of new senior secured credit facilities. It announced the deal in a press release on Monday and disclosed more details in the SEC filing on Wednesday.

In addition to the term loan B, the facilities include a $500 million five-year revolving facility and a $350 million five-year term loan A.

Initially, the interest rate for the revolver and term loan A is Libor plus 225 bps, and the commitment fee is 45 bps. The margin over Libor ranges from 162.5 bps to 250 bps, and the commitment fee ranges from 25 bps to 50 bps, both based on leverage.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Bank of America Merrill Lynch and Wells Fargo Securities, LLC are the lead arrangers and bookrunners.

JPMorgan Chase Bank, NA is the administrative agent. Deutsche Bank Securities, Bank of America, NA, Wells Fargo Bank, NA and SunTrust Bank are the syndication agents. Bank of Tokyo-Mitsubishi UFJ, Ltd., BMO Harris Bank NA and RaboBank Nederland, New York Branch, are the documentation agents.

Manitowoc must prepay the two term loans from the net proceeds of asset sales, casualty losses, equity offerings and new debt for borrowed money and from a portion of its excess cash flow, subject to some exceptions.

The revolver includes a $125 million subfacility for letters of credit and a $60 million swingline facility. Up to $300 million of the revolver borrowings can be made in alternative currencies.

As previously reported, the amendment and restatement extends the maturity dates of the company's revolver to 2018 from 2016 and its term loans to 2020 from 2017.

The interest rate under the revolver and term loan A was reduced by 75 bps.

The new facilities will allow the company to redeem its 9½% senior notes due 2018 at the end of their non-call period in February.

Manitowoc is a Manitowoc, Wis.-based manufacturer and seller of cranes and related products and foodservice equipment.

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