Franklin Electric enters $150 million revolver at Libor plus 107.5 bps

By Aleesia Forni

Columbus, Ohio, Oct. 11 - Franklin Electric Co. Inc. closed a $150 million five-year senior revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Pricing on the revolver ranges from Libor plus 75 basis points to 167.5 bps, based on the company's leverage ratio.

Facility fees range from 12.5 bps to 32.5 bps.

Initially, the revolver will bear interest at Libor plus 107.5 bps, and the facility fee will be 17.5 bps.

The company also has the option to increase the facility to $225 million.

The facility contains $15 million available for swingline loans and $25 million for letters of credit.

The credit agreement also allows Franklin Electric to borrow $75 million in any currency that is freely transferable and convertible into U.S. dollars.

Franklin Electric has the option to request that the lenders bid for borrowings to bear interest at an absolute rate or a margin over Libor.

The company must maintain a consolidated total debt to consolidated EBITDA ratio of less than 3.50 to 1.00 and a consolidated EBIT to consolidated interest expense ratio of equal to or more than 3.00 to 1.00.

J.P. Morgan Securities LLC serves as lead arranger and bookrunner, while JP Morgan Chase Bank NA is administrative agent.

Franklin Electric is a Bluffton, Ind.-based provider of water and fueling systems.

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