Flowserve gets commitment for $1 billion credit facility

By Sara Rosenberg

New York, July 18 - Flowserve Corp. has gotten a commitment for a new $1 billion credit facility, according to a company news release. Bank of America and Merrill Lynch & Co. are the lead banks on the deal.

The facility consists of up to a $400 million revolving credit facility and up to a $600 million term loan.

Proceeds will be used to refinance at a lower blended interest rate the company's existing term loan A and term loan C debt, existing revolver and its outstanding 12.25% senior subordinated notes.

The deal is expected to close around mid-August.

"These actions clearly demonstrate our continuing focus to lower our debt cost and to enhance the flexibility of our capital structure," said Mark A. Blinn, chief financial officer, in the release. "In our view, this refinancing shows our continuing strong relationship with our credit providers."

Flowserve is an Irving, Texas, provider of fluid motion and control products and services.

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