Davey Tree gets $250 million five-year revolving credit commitments

By Susanna Moon

Chicago, Oct. 12 – Davey Tree Expert Co. obtained a five-year revolving credit commitment of $250 million under an amended credit agreement on Oct. 6, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will initially be Libor plus 100 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.

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

The credit agreement includes a letter of credit commitment of $100 million and a swing line commitment of $25 million.

The company may upsize the revolving credit commitment amount to $325 million.

The commitments will expire on Oct. 6, 2022.

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

Davey Tree refinanced its $175 million facility dated Nov. 7, 2013.

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

© 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.