Federal Signal enters $325 million revolver at Libor plus 100 bps

By Wendy Van Sickle

Columbus, Ohio, Feb. 2 – Details of Federal Signal Corp.’s amended and restated credit agreement entered into on Jan. 27, which provides for a $325 million five-year revolving credit facility, were given in an 8-K filed with the Securities and Exchange Commission on Tuesday.

Borrowings initially bear interest at Libor plus 100 basis points, and there is an initial commitment fee of 15 bps. The margin can range from 100 bps to 225 bps and the commitment fee from 15 bps to 30 bps, depending on the company’s consolidated total leverage ratio.

The credit agreement allows Federal Signal to borrow in U.S. dollars, in Canadian dollars up to C$85 million or in euros up to a maximum of €20 million, according to the 8-K.

The facility has a $50 million sublimit for letters of credit, and the company may request commitment increases up to an additional $75 million.

Wells Fargo Securities, LLC and J.P. Morgan Securities LLC acted as joint lead arrangers and joint bookrunners; JPMorgan Chase Bank, NA as syndication agent; KeyBank NA as documentation agent; and Wells Fargo Bank, NA as administrative agent.

Proceeds may be used for working capital and general corporate purposes, including permitted acquisitions.

Federal Signal is an Oak Brook, Ill.-based provider of environmental and safety solutions.

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