Circor gets $500 million five-year facility at Libor plus 100-200 bps

By Susanna Moon

Chicago, May 17 – Circor International, Inc. obtained a five-year secured credit facility consisting of a $400 million revolving line of credit and a $100 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 100 basis points to 200 bps based on the company’s leverage. The applicable margin is initially 175 bps.

The commitment fee ranges from 10 bps to 30 bps, also based on leverage. The fee is initially 25 bps.

The company entered the credit agreement on May 11 with SunTrust Robinson Humphrey, Inc., KeyBanc Capital Markets Inc. and Citizens Bank, NA as the joint-lead arrangers and joint-bookrunners and with SunTrust Bank as administrative agent.

KeyBank NA is the syndication agent, and Citizens Bank, NA is the documentation agent.

The term loan requires quarterly principal payments of 1.125% beginning June 30. The company may repay debt under the agreement at any time.

The financial covenants include a minimum interest coverage ratio and a maximum leverage ratio.

The new agreement replaces the company’s credit facility with SunTrust Bank as administrative agent, which had about $254 million of debt outstanding.

At closing, the company had $256 million outstanding under the new credit agreement.

Burlington, Mass.-based Circor designs, manufactures and distributes fluid-control products and services.

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