Monotype replaces $150 million revolver with new $200 million revolver

By Wendy Van Sickle

Columbus, Ohio, March 26 – Monotype Imaging Holdings Inc. entered into a new credit agreement on Friday with Bank of America, NA as agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement consists of a five-year $200 million secured revolving credit facility that may be increased to a maximum of $300 million.

The new revolving credit facility replaces the company’s existing $150 million revolving credit facility with Silicon Valley Bank as agent, which was due to mature on Sept. 15, 2020.

Borrowings under the new facility bear interest at Libor plus an applicable margin based on the applicable leverage ratio, ranging from 100 basis points to 162.5 bps.

The company is required to pay a commitment fee, also based on the applicable leverage ratio, ranging from 17.5 bps to 25 bps.

The credit agreement includes financial maintenance covenants such as a maximum ratio of consolidated total debt to consolidated adjusted EBITDA of 3.25 to 1, or 3.75 to 1 following a qualified acquisition, and a minimum consolidated interest coverage ratio of 3 to 1.

Monotype provides text imaging solutions and is based in Woburn, Mass.

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