Hillenbrand gets $225 million additional three-year term loan

By Sarah Lizee

Olympia, Wash., Oct. 11 – Hillenbrand, Inc. amended its credit agreement on Oct. 8 with JPMorgan Chase Bank, NA as administrative agent, providing for a new up to $225 million additional three-year term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement also provides for an existing $900 million revolver and $500 million five-year term loan facility. The revolver may be expanded by another $450 million.

The new term loan is subject to the same funding conditions as, and the proceeds may be used for the same purposes as, the existing term loan, including to pay a portion of the consideration payable in connection with the company’s previously announced acquisition of Milacron Holdings Corp.

Additional term loans are subject to quarterly amortization payments equal to 5% of the original principal amount of the additional term loans in each of years one and two and 7.5% in year three.

Commitments for additional term loans will bear a ticking fee of 0.15% on the amount of the commitments commencing 60 days after the signing date of the first amendment until the date the additional term loans are funded or the commitments for additional term loans under the additional term loan facility are terminated.

Additional term loans will accrue interest at Libor plus 87.5 basis points to 162.5 bps, based on leverage. Interest is initially Libor plus 87.5 bps.

The additional term loans will be subject to the same affirmative and negative covenants and events of default as those applicable to the existing revolver and the term loan facility.

Hillenbrand is a diversified industrial company based in Batesville, Ind. Milacron is a Cincinnati-based provider of plastics processing technologies and industrial fluids.

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