Manitowoc proposed credit facility to be sized at $1.15 billion

By Sara Rosenberg

New York, April 13 - Manitowoc Co. Inc.'s proposed senior secured credit facility that is set to launch with a bank meeting on Thursday will be sized at $1.15 billion, according to a news release.

The facility will include a $500 million revolver and $650 million of term loan A and term loan B debt.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance an existing senior secured credit facility.

At Dec. 31, the company had $24.2 million outstanding under a $400 million revolver, $459.7 million of term loan A borrowings and $338.1 million of term loan B debt. Then, on Jan. 14, the company used about $124 million of the proceeds from the sale of its Kysor/Warren and Kysor/Warren de Mexico businesses to pay down term loan A and B balances.

The refinancing is expected to result in lower pricing and would extend the maturity date of the company's revolver and term loans to 2016 and 2017 from 2013 and 2014, respectively.

"Our decision to proactively take advantage of the strong debt markets will allow us to further improve our capital structure and financial flexibility, while realizing significant interest cost savings," said Glen E. Tellock, chairman and chief executive officer, in the release.

"These changes, combined with the debt refinancing actions taken in 2010, provide the company with the necessary flexibility to execute on our business strategy and capitalize on new opportunities to create shareholder value amid global economic recovery and growth."

Manitowoc is a Manitowoc, Wis.-based manufacturer and seller of cranes and related products and foodservice equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.