Donaldson gets 364-day $100 million revolver at Libor plus 130 bps

By Wendy Van Sickle

Columbus, Ohio, May 21 – Donaldson Co., Inc. entered into a $100 million 364-day revolving credit agreement on Monday with U.S. Bank NA as lead arranger, bookrunner and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The revolver will mature on May 17, 2021 and has a one-year extension option.

It provides incremental borrowing capacity above the company’s existing $500 million revolver.

Borrowings bear interest at Libor plus a margin that is initially 130 basis points and can range from 109.5 bps to 167.5 bps, depending on leverage.

The commitment fee is initially 32.5 bps and may range from 28 bps to 45 bps.

The agreement contains covenants that are consistent with the company’s $500 million revolver, including financial covenants requiring the company to maintain a consolidated interest coverage ratio of not less than 3.5 and a consolidated adjusted debt-to-EBITDA ratio of not more than 3.5.

Donaldson is a Minneapolis-based manufacturer of filtration systems and replacement parts.

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