Monster restates credit agreement for $190 million revolver, term loan

By Marisa Wong

Madison, Wis., Nov. 4 – Monster Worldwide, Inc. amended and restated its credit agreement on Oct. 31 with Bank of America, NA as administrative agent for a $100 million revolving credit facility and a $90 million term loan facility, providing for a total of $190 million in available credit, according to an 8-K filing with the Securities and Exchange Commission.

On the closing date, the company had $10.5 million of borrowings outstanding under the revolving credit facility and $90 million of borrowings outstanding under the term loan facility.

Each of the revolver and the term loan matures on Oct. 31, 2017.

The company is required to make quarterly amortization payments on the outstanding principal amount of the term loans, with $2.25 million payable on each of Dec. 31, March 31, June 30, 2015 and Sept. 30, 2015, $2,812,500 payable on each of Dec. 31, 2015, March 31, 2016, June 30, 2016 and Sept. 30, 2016, $3,375,000 payable on each of Dec. 31, 2016, March 31, 2017, June 30, 2017 and Sept. 30, 2017 and the remaining balance due at maturity.

Borrowings will bear interest at Libor plus a margin ranging from 250 basis points to 325 bps, depending on the consolidated leverage ratio.

In addition, the company will be required to pay a fee on all outstanding amounts of letters of credit at a rate per year ranging from 250 bps to 325 bps and a commitment fee on the unused portion of the revolving credit facility at a rate per year ranging from 35 bps to 50 bps, both depending on the consolidated leverage ratio.

The credit agreement contains financial covenants requiring the company to maintain (a) a consolidated leverage ratio of no more than 2.75 to 1.00 as of the end of each fiscal quarter ending after the closing date through the fiscal quarter ending March 31 and 2.50 to 1.00 as of the end of the fiscal quarter ending June 30, 2015 and each fiscal quarter ending after that and (b) a consolidated fixed-charge coverage ratio of at least 1.50 to 1.00.

Proceeds from the amended credit agreement will be used to refinance the obligations under the existing credit agreement and for general corporate purposes.

New York-based Monster is an online and mobile employment services company.

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