FEI enters into $200 million five-year revolver via JPMorgan Chase

By Tali Rackner

Norfolk, Va., March 29 – FEI Co. entered into a $200 million five-year revolving credit facility on Thursday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility includes a $100 million subfacility for euro-denominated loans, a $10 million subfacility for swingline loans and a $50 million subfacility for letters of credit.

There is an up to $200 million accordion feature.

Interest is equal to Libor plus 100 basis points to 150 bps, based on FEI’s leverage ratio. The initial interest rate is Libor plus 100 bps.

Revolving loans may be borrowed, repaid and reborrowed until the March 24, 2021 maturity and voluntarily prepaid at any time without premium or penalty.

The credit agreement provides for financial covenants that require FEI to maintain a minimum interest coverage ratio of 3 times and a maximum leverage ratio of 3 times.

There are currently no revolving loans or letters of credit outstanding under the credit agreement.

At closing, the company used cash on hand to pay related fees under its existing $100 million secured revolving credit facility and terminated the facility.

Bank of America, NA is the syndication, and U.S. Bank NA is the documentation agent. JPMorgan and Bank of America Merrill Lynch are joint lead arrangers and bookrunners.

FEI is a Hillsboro, Ore.-based maker of high-end microscopes used in research laboratories and semiconductor manufacturing.

© 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.