Rogers amends and extends facility while raising size by $100 million

By Jennifer Chiou

New York, July 19 - Rogers Corp. entered into an amendment and restatement of its $265 million five-year secured credit agreement on July 13 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

HSBC Bank USA, NA, RBS Citizens, NA and Fifth Third Bank acted as joint bookrunners and joint lead arrangers, with HSBC and RBS Citizens as co-syndication agents and Fifth Third and Citibank, NA as co-documentation agents.

The changes include the:

• Increase in capacity to $265 million from $165 million with the addition of a $100 million term loan;

• Extension of the maturity to July 13, 2016 from Nov. 23, 2014;

• Reduction of the borrowing spread by 25 basis points;

• Increase in the size of permitted acquisitions to $100 million from $25 million; and

• Increase in permitted additional debt to $120 million from $20 million.

Borrowings may be used to finance working capital needs, for letters of credit and for general corporate purposes, the filing stated.

The company said that borrowings will bear interest at Libor plus 175 bps to 250 bps depending on leverage.

Rogers will pay a quarterly fee of 20 bps to 35 bps, also depending on leverage.

The facility will come due on June 30, 2016.

The filing said that the annual payment schedule is $2.5 million in 2011, $7.5 million in 2012, $12.5 million in 2013, $17.5 million in 2014 and $35 million in 2015, with $25 million due in 2016.

Also, Rogers has to maintain at the end of each fiscal quarter on or after Dec. 31, a fixed-charge coverage ratio of no less than 2.5 to 1.0 and a leverage ratio of no more than 3 to 1.

At July 13, the company had outstanding debt of $135 million under the amended credit agreement.

The Rogers, Conn.-based company focuses on worldwide markets that support high technology applications, such as cellular base stations and antennas, handheld wireless devices, satellite television receivers, wind and solar energy applications, and hybrid, including electric, vehicles.

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