Furmanite increases revolver to $150 million, lowers interest rate

By Angela McDaniels

Tacoma, Wash., March 19 – Furmanite Corp. subsidiary Furmanite Worldwide, Inc. amended its credit agreement on March 13 to increase the revolving credit facility to $150 million from $100 million and extend the maturity date to March 13, 2020 from Feb. 28, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The margin over Libor was reduced to a range from 100 basis points to 150 bps, and the commitment fee was reduced to a range from 15 bps to 25 bps. The initial interest rate is Libor plus 125 bps with a commitment fee of 20 bps. Pricing continues to be based on the company’s leverage ratio.

The amendment also made the following changes:

• The definition of fixed charges and the calculation of the fixed charge coverage ratio were modified with regard to the treatment of restricted payments and cash paid for taxes;

• The limitation on restricted payments was generally eliminated, provided that the leverage ratio is less than 2 to 1;

• The maximum leverage ratio was increased to 3 to 1 from 2.75 to 1; and

• Some covenant restrictions were eased, including those relative to levels of investments and expenditures for acquisitions;

• Wells Fargo Bank, NA succeeded JPMorgan Chase Bank, NA as administrative agent; and

• The composition of the lenders and their respective commitment amounts changed.

Furmanite is a Houston-based specialty industrial services company.

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