Davey Tree gets $325 million five-year revolving credit commitments

By Wendy Van Sickle

Columbus, Ohio, Aug. 23 – Davey Tree Expert Co. obtained a five-year revolving credit commitment of $325 million under an amended and restated credit agreement on Aug. 18, according to an 8-K filing with the Securities and Exchange Commission.

The revolver replaces the company’s $250 million revolver dated Oct. 6, 2017.

The credit agreement includes a letter-of-credit commitment of $150 million and a swingline commitment of $30 million.

The company may upsize the revolving credit commitment amount to $425 million.

The commitments will expire on Aug. 18, 2026.

Interest on the loans will initially be Libor plus 87.5 basis points with the spread ranging from Libor plus 87.5 bps to 150 bps based on leverage.

The commitment fee is initially 12.5 bps and ranges from 10 bps to 22.5 bps.

The financial covenants require a maximum leverage ratio of 3 times, except for in the case of material acquisitions, and a minimum interest coverage ratio of 3 times.

KeyBank NA is the lead arranger, syndication agent and administrative agent. PNC Bank, NA and Wells Fargo Bank, NA are the co-documentation agents.

Kent, Ohio-based Davey Tree provides residential and commercial tree and landscaping services throughout North America.

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