RBC Bearings amends loan terms for dividend pay via JPMorgan, KeyBank

By Susanna Moon

Chicago, May 16 - RBC Bearings Inc. and Roller Bearing Co. of America, Inc. amended their credit agreement with JPMorgan Chase Bank, NA and KeyBank NA as co-lead arrangers and joint lead bookrunners, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank is the administrative agent, and the credit agreement was dated Dec. 1, 2010.

The company added a definition for "specified dividend" to mean the one-time dividend paid for equity interests during the fiscal quarter ending June 30 in an amount not to exceed $50 million.

The definition of "consolidated EBITDA" was amended to provide that the consolidated fixed charges be calculated without giving effect to the specified dividend for purposes of calculating the fixed-charge coverage ratio for the testing period ending June 30.

The monetary limit on the company's ability to declare and pay or make capital distributions during any fiscal year was increased to $70 million from $10 million.

The company declared a special cash dividend of $2.00 per share to be paid to shareholders on June 13.

RBC Bearings is an Oxford, Conn.-based manufacturer of highly engineered precision plain, roller and ball bearings for the industrial, defense and aerospace industries.

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