FMC, Technip Eurocash line up $2.5 billion revolver ahead of merger

By Wendy Van Sickle

Columbus, Ohio, Jan. 13 – FMC Technologies, Inc. and Technip Eurocash SNC entered into a new five-year $2.5 billion multicurrency revolving credit facility on Thursday in anticipation of their combination into TechnipFMC plc, according to an 8-K filing with the Securities and Exchange Commission.

The revolver will become available upon consummation of the merger, at which time it will replace FMC’s $2 billion revolver and Technip’s €1 billion multicurrency revolver. It will terminate on the fifth anniversary of funding.

The credit facility has a $500 million accordion feature, a $1.5 billion sublimit for letters of credit and a $500 million sublimit for swingline loans.

The interest rate is Libor or Euribor, depending on currency, plus a margin that ranges from 82 basis points to 130 bps. The margin will depend on TechnipFMC’s credit ratings.

The facility fee will range from 8 bps to 20 bps, depending on credit ratings.

JPMorgan Chase Bank, NA, Societe Generale, Bank of America, NA, BNP Paribas, Credit Agricole CIB, Sumitomo Mitsui Banking Corp. Europe Ltd., Bank of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Bank International UC acted as joint bookrunners and joint lead arrangers with JPMorgan Chase Bank, NA as agent, Bank of America, BNP, Credit Agricole, Sumitomo Mitsui, Bank of Tokyo-Mitsubishi and Wells Fargo as co-documentation agents and SG Americas Securities, LLC as syndication agent.

Proceeds may be used to refinance existing debt, to pay fees and expenses and for working capital and general corporate purposes.

Houston-based FMC provides technology solutions for the energy industry such as surface wellhead production systems and marine loading systems. Paris-based Technip Eurocash is a subsidiary of Technip SA, a project management, engineering and construction company for the energy industry.

© 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.