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Vulcan seals $600 million five-year ABL revolver at Libor plus 175 bps
By Susanna Moon
Chicago, Dec. 20 - Vulcan Materials Co. closed a $600 million five-year asset-based lending credit facility on Thursday with SunTrust Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
Interest on the loans is initially Libor plus 175 basis points, and the spread is 175 bps to 225 bps based on availability. The unused fee is 25 bps to 37.5 bps.
The facility is secured by accounts receivable and inventory and guaranteed by most of the company's subsidiaries, and drawdowns are limited by a borrowing base derived from advance rates against the collateral.
Covenants include limitations on liens, debt, guaranties, certain restricted payments, acquisitions and divestitures and a minimum fixed charge coverage ratio that applies if the facility usage exceeds 90% of the lesser of the facility amount and the borrowing base.
Proceeds will be used for general corporate purposes.
The facility matures on Dec. 15, 2016.
SunTrust Robinson Humphrey, Inc. is left lead arranger and bookrunner, Wells Fargo Capital Finance, LLC is joint lead arranger and bookrunner, and Bank of America Merrill Lynch is joint bookrunner. Wells Fargo Bank, NA is syndication agent. Bank of America, NA, Regions Bank and U.S. Bank NA are co-documentation agents.
The lenders are SunTrust Bank, Wells Fargo Bank, Bank of America, Regions Bank, U.S. Bank, Goldman Sachs Bank USA, Northern Trust Co., Synovus Bank and Atlantic Capital Bank.
The facility replaces the company's five-year credit agreement with Bank of America as administrative agent.
The Birmingham, Ala., company produces construction aggregates, primarily crushed stone, sand and gravel.
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