Davey Tree arranges $175 million revolver due 2018 via KeyBank

By Toni Weeks

San Luis Obispo, Calif., Nov. 12 - Davey Tree Expert Co. entered into a $175 million second amended and restated credit agreement last Thursday, replacing its $140 million credit agreement dated Nov. 21, 2006, according to an 8-K filing with the Securities and Exchange Commission.

The agreement, which provides for a $175 million revolving credit commitment, includes a letter-of-credit sublimit of $100 million and a swingline sublimit of $15 million. An accordion feature allows borrowings to be increased to $210 million.

The credit agreement will expire Nov. 7, 2018.

Borrowings bear interest at Libor plus 75 basis points to 150 bps. The company will pay a letter-of-credit fee that is equal to the margin over Libor, a 10 bps letter-of-credit fronting fee and a 10 bps to 25 bps commitment fee. All are based on leverage.

Proceeds may be used for working capital, capital expenditures and other general corporate purposes.

Borrowings are guaranteed by subsidiaries Davey Tree Surgery Co., Wolf Tree, Inc. and Care of Trees, Inc.

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

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

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