RBS Global enters $550 million term loan B, $200 million revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – RBS Global Inc. amended and restated its credit agreement dated Aug. 21, 2013 with Credit Suisse AG, Cayman Islands Branch as administrative agent to provide for a $550 million term B loan and a $200 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures on Oct. 4, 2026 and the term loan on Oct. 4, 2028.

The amended agreement modifies provisions for potential future replacement of Libor.

Proceeds of the term loan were used with cash on hand and cash from a payment to fully repay the $625 million of term B loans outstanding under the existing agreement and to redeem the $500 million of 4 7/8% senior notes due 2025 issued by Zurn Holdings, Inc. in December 2017.

The term B loan bears interest at Libor plus an initial margin of 225 basis points with a 0.5% Libor floor. The margin can vary based on net first-lien leverage ratio. The term B will be subject to quarterly amortization of 0.25%.

The revolver bears interest at Libor plus a margin of either 175 bps or 200 bps and has a commitment fee on the average daily unused portion of either 37.5 bps or 50 bps, both depending on leverage ratio.

Credit Suisse Loan Funding LLC, BMO Capital Markets Corp., Barclays Bank plc, Citibank, NA and Mizuho Bank, Ltd. are the joint lead arrangers, bookrunners, co-syndication agents and co-documentation agents.

RBS is a Milwaukee-based multi-platform industrial company.

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