Franklin Resources enters $500 million 364-day revolver

By Marisa Wong

Los Angeles, Jan. 14 – Franklin Resources, Inc. entered into a credit agreement with Bank of America, NA as administrative agent, lead arranger and bookrunner for a 364-day revolving credit facility totaling $500 million, according to an 8-K filing with the Securities and Exchange Commission.

As of the Jan. 10 closing date, there were no amounts outstanding under the credit agreement.

Amounts outstanding will bear interest at the BSBY rate, subject to a BSBY floor of zero, plus an applicable margin of 65 basis points.

The company is also required to pay an annual commitment fee equal to 5 bps on the average unused amount of the revolver, payable quarterly.

At any time, the company may terminate the commitments under the revolver in full or in part or prepay loans outstanding in whole or in part, subject to the payment of BSBY breakage fees, if any.

The credit agreement contains a financial performance covenant requiring that the company maintain a consolidated net leverage ratio, measured as of the last day of each fiscal quarter, of no greater than 3.00 to 1.00.

Borrowings may be used for general corporate purposes.

Referred to with its subsidiaries as Franklin Templeton, the holding company for investment managers is based in San Mateo, Calif.

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