Waters gets $300 million term loan, $1.5 billion revolver via JPMorgan

By Susanna Moon

Chicago, Dec. 4 – Waters Corp. obtained a five-year facility consisting of a $300 million term loan and a $1.5 billion revolving facility.

Waters entered into a credit agreement last Thursday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The commitments may be increased by up to another $200 million in an amount of at least $25 million.

Interest on the loans will be Libor plus 80 basis points to 112.5 bps based on leverage. The facility fee ranges between 7.5 bps and 25 bps.

At closing, Waters drew the $300 million term loan and $1.01 billion under the revolver and used the $1.31 billion of borrowings to repay its previous credit agreement dated June 25, 2013 with JPMorgan Chase Bank as administrative agent.

The credit agreement requires an interest coverage ratio test of at least 3.5 times and a leverage ratio of no more than 3.5 times, both similar to that of the company’s previous credit agreement.

After closing a material acquisition, the company may increase the maximum leverage ratio to 4 times for the fiscal quarter in which the acquisition occurred and for three consecutive fiscal quarters afterward.

The term loan and the revolver will mature Nov. 30, 2022.

The obligations under the credit agreement are unsecured and guaranteed by Waters’ domestic subsidiaries.

Waters is an analytical instrument manufacturer based in Milford, Mass.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.