Fabrinet lowers revolver to $25 million, gets $65 million term loan

By Sarah Lizee

Olympia, Wash., June 7 – Fabrinet amended its credit agreement on Monday with Bank of America, NA as administrative agent to refinance its existing loans, reduce and extend revolving commitments and trim interest rates and fees, according to an 8-K filing with the Securities and Exchange Commission.

The amendment reduced revolving commitments to $25 million from $150 million and extended the termination date of revolving commitments to June 4, 2023 from May 22, 2019.

The existing term loan and all the existing revolving loans were refinanced into a $65 million term loan that matures on June 4, 2023.

There is an accordion feature allowing the company to request an increase of the revolver for up to $200 million of additional commitments.

Loans now bear interest at Libor plus a spread of 150 basis points to 225 bps, based on the consolidated total leverage ratio for the preceding four fiscal quarter period. Interest is initially Libor plus 150 bps.

The commitment fee is 15 bps.

Term loans will be repaid in quarterly installments equal to $812,500, beginning on June 30, with the remaining outstanding principal and accrued interest being due and payable on June 4, 2023.

As of the amendment, $65 million of term loans and no revolving loans were outstanding under the credit agreement.

The Grand Cayman-based company provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of optics.

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