Fastenal gets $500 million loan at Libor plus 95 bps with Wells Fargo

By Susanna Moon

Chicago, May 5 – Fastenal Co. obtained a committed $500 million unsecured revolving credit facility on May 1 with Wells Fargo Securities, LLC as lead arranger and book manager, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA as administrative agent. U.S. Bank NA is the documentation agent.

The revolver includes a committed letter-of-credit subfacility of $55 million and an uncommitted swingline loan subfacility of $25 million.

The commitments will expire on March 1, 2018.

Interest will be Libor plus 95 basis points with a Libor floor of 0%.

The unused fee will be 10 bps or 12.5 bps.

The agreement requires the company to maintain a consolidated total leverage ratio at the end of each fiscal quarter of no more than 1.75 times and EBITDA during any consecutive four quarter period at no less than $400 million.

The company terminated its existing credit agreement upon entering into the new agreement, the filing stated.

Fastenal is a supplier of fasteners and other industrial products based in Winona, Minn.

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