Applied Industrial gets $150 million five-year revolver via KeyBank

By Susanna Moon

Chicago, May 17 - Applied Industrial Technologies, Inc. obtained a $150 million five-year unsecured revolving credit facility to replace its facility with KeyBank NA for the same amount.

Interest on the loans is initially Libor plus 66 basis points, and the margin will range from 66 bps to 132.5 bps, based on leverage. The facility fee ranges from 9 bps to 17.5 bps.

The company closed a credit agreement Tuesday with KeyBank as lead arranger, bookrunner and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

U.S. Bank NA and PNC Bank, NA are the co-syndication agents, and JPMorgan Chase Bank, NA is the documentation agent.

The facility matures on May 14, 2017, and the maximum amount of commitments under the agreement may be expanded to $200 million.

The agreement also contains sublimits for swingline loans and letters of credit.

As of Tuesday, there were no outstanding borrowings under the agreement or the previous credit facility.

Proceeds will be used for working capital needs and general corporate purposes.

The company is required to maintain a leverage ratio of no more than 3 times.

Applied Industrial is an industrial distributor based in Cleveland.

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