FLIR Systems amends and restates $900 million credit agreement

By Sarah Lizee

Olympia, Wash., April 1 – FLIR Systems, Inc. amended its credit agreement on Friday with Bank of America, NA as administrative agent, providing for a $650 million unsecured revolving credit facility, a $100 million unsecured term loan available in dollars and a $150 million unsecured term loan available in Swedish krona, according to an 8-K filing with the Securities and Exchange Commission.

The amended credit agreement amends and restates the company’s existing agreement dated May 31, 2016.

In connection with the amendment, FLIR made an initial borrowing of $100 million in revolving loans, $100 million in term loans in U.S. dollars, and the equivalent of $150 million in term loans in Swedish krona.

Additionally, FLIR repaid in full all outstanding amounts, consisting of revolving loans in a total principal amount of $375 million, under the existing credit agreement.

Interest is Libor plus 100 basis points to 137.5 bps, and the commitment fee is 12.5 bps to 20 bps, in each case depending on its consolidated total leverage ratio. Interest is initially Libor plus 125 bps and the commitment fee is 17.5 bps.

The revolving commitments and the term loans will mature on March 29, 2024.

FLIR may designate its subsidiaries as additional designated borrowers, but the agreement will not initially be guaranteed by any subsidiaries. In the future, some domestic subsidiaries, including domestic subsidiaries that guarantee other debt in excess of $100 million, may be required to become guarantors.

Amounts repaid under the revolving credit facility may be reborrowed, and amounts repaid under the term loan facilities may not be reborrowed.

FLIR may increase the total amount of commitments by a total additional amount not to exceed $200 million.

Merrill Lynch, Pierce, Fenner & Smith Inc. and JPMorgan Chase Bank, NA are joint lead arrangers and joint bookrunners. JPMorgan and U.S. Bank NA are co-syndication agents. Citibank, NA and MUFG Bank, Ltd. are co-documentation agents.

FLIR Systems is a Wilsonville, Ore., manufacturer of sensors and imaging systems.

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