Raven Industries enters into $125 million five-year revolver

By Tali Rackner

Norfolk, Va., April 16 – Raven Industries, Inc. entered into a new $125 million five-year senior unsecured multi-currency revolving credit facility on Wednesday via administrative agent JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The new syndicated credit facility, which also permits the issuance of letters of credit and swingline loans, replaces the company’s existing credit agreement.

Loans made under the facility mature on April 15, 2020.

Interest is Libor plus 100 basis points to 200 bps, based on leverage. The commitment fee ranges from 15 bps to 30 bps, also based on leverage.

Certain financial covenants require Raven to maintain a minimum ratio of EBITDA to interest expense for any period of four consecutive fiscal quarters ending on the last day of any fiscal quarter of 3.5 times, and a maximum ratio of funded debt to EBITDA on the last day of any fiscal quarter of 3 times. The maximum funded debt to EBITDA ratio may be increased to 3.25 times under certain circumstances following a permitted acquisition.

Proceeds will be used for strategic business purposes and for working capital needs.

JPMorgan Chase Bank, NA, Toronto Branch, is the Canadian administrative agent, and J.P. Morgan Securities LLC and Wells Fargo Securities LLC are joint bookrunners and lead arrangers.

In addition, Raven and certain of its material domestic subsidiaries, as guarantors, entered into a separate guaranty agreement under which the guarantors guarantee to the lenders all of the obligations of the company and each other guarantor under the credit agreement. From time to time, Raven may be required to cause additional material domestic subsidiaries to become guarantors under the guaranty.

Raven Industries is a Sioux Falls, S.D.-based maker of plastic sheeting for industrial, agricultural, construction and military/aerospace markets.

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