Furmanite units enter into $75 million five-year revolving facility

By Marisa Wong

Madison, Wis., March 6 - Furmanite Corp.'s wholly owned subsidiary, Furmanite Worldwide, Inc., and certain foreign subsidiaries entered into a credit agreement on March 5, according to an 8-K filed Tuesday with the Securities an Exchange Commission.

The agreement, which matures on Feb. 28, 2017, provides a revolving credit facility of up to $75 million. Of that amount, up to $20 million is available for the issuance of letters of credit and up to $7.5 million is available for swingline loans.

Each Furmanite foreign subsidiary may only borrow up to $50 million under the credit facility.

Interest is equal to Libor plus 125 basis points to 225 bps, depending on the company's leverage ratio.

The agreement contains a commitment fee ranging form 25 bps to 30 bps, also depending on leverage.

Proceeds from the initial borrowing under the new credit agreement were used to pay amounts outstanding under Furmanite's previous $50 million credit facility dated July 31, 2009. As of March 5, there was about $30 million outstanding under the old loan, which was terminated on the closing date of the new facility.

The current credit agreement includes financial covenants, which require that the company maintain

• A funded debt to EBITDA ratio of no more than 2.75 to 1.00 as of the last day of each fiscal quarter, measured on a trailing four-quarter basis;

• A fixed charge coverage ratio of at least 1.25 to 1.00, defined as EBITDA minus capital expenditures/interest plus cash taxes plus scheduled payments of debt plus restricted payments made; and

• A minimum asset coverage of at least 1.50 to 1.00, defined as cash plus net accounts receivable plus net inventory plus net property, plant and equipment that are subject to a first-priority perfected lien in favor of the administrative agent and the lenders.

J.P. Morgan Securities LLC is the bookrunner and lead arranger with Wells Fargo Securities, LLC as joint lead arranger and joint bookrunner. JPMorgan Chase Bank, NA is the administrative agent, and Wells Fargo Bank, NA is the syndication agent.

Furmanite is a Richardson, Texas-based on-site machining and engineering services company.

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