Viad enters into $300 million amended and restated credit agreement

By Toni Weeks

San Luis Obispo, Calif., Dec.23 – Viad Corp. entered into a $300 million amended and restated credit agreement on Dec. 22, replacing its $180 million revolving credit agreement dated May 18, 2011, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for a senior credit facility consisting of a $175 million revolving credit facility and a $125 million term loan, both of which mature Dec. 22, 2019. The company may obtain additional borrowings of up to a total of $100 million under the revolver, term loan or a combination of the two.

Borrowings bear interest at Libor plus 150 basis points to 225 bps. There is also a letter-of-credit fee of 150 bps to 225 bps and a commitment fee of 25 bps to 40 bps. The exact rates depend on the leverage ratio.

Proceeds may be used to refinance some outstanding debt and for general corporate purposes.

According to the filing, the restrictive covenants under the new agreement are generally the same or less restrictive than under the 2011 credit facility.

JPMorgan Chase Bank, NA is the administrative agent, and JPMorgan Securities LLC is the lead arranger and sole bookrunner.

Bank of America, NA, Keybank NA, U.S. Bank NA, Wells Fargo Bank, NA and BMO Harris Bank, NA are co-syndication agents.

New lenders include Bank of the West, NA and BOKF NA, doing business as Bank of Arizona, along with BMO Harris.

The Phoenix-based company provides services for exhibition organizers as well as travel and recreation services.

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