Meritor extends revolver maturity, obtains $100 million term loan

By Sara Rosenberg

New York, April 24 - Meritor Inc. has amended and restated its credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The company said it extended the revolver maturity to April 2017 from January 2014 and provided for a new $100 million amortizing term loan due 2017.

Additionally, the revolver was reduced to $429 million from $441 million through January 2014 and then to $415 million through maturity in April 2017.

The pricing grid was also revised to reduce the spread if corporate ratings improve. The spread can range from Libor plus 325 basis points to 525 bps and the unused fee can range from 50 bps to 75 bps. Pricing on the new term loan can range from Libor plus 325 bps to 525 bps.

In addition, the company modified its debt to EBITDA covenant and reset some investment and debt baskets.

The amendment and restatement were completed Monday.

JPMorgan Chase Bank is the administrative agent on the deal.

Meritor is a Troy, Mich.-based auto components manufacturer.

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