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RPM International closes $1.3 billion five-year revolving facility
By Marisa Wong
Morgantown, W.Va., Nov. 6 – RPM International Inc. entered into a $1.3 billion unsecured syndicated revolving credit facility on Oct. 31, according to an 8-K filing with the Securities and Exchange Commission.
PNC Capital Markets LLC, Citizens Bank, NA, Keybanc Capital Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc. and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners. PNC Bank, NA is administrative agent, and Bank of America, NA, Citizens Bank, KeyBank NA and Wells Fargo Bank are co-syndication agents.
The credit facility expires on Oct. 31, 2023.
The facility includes sublimits for the issuance of swingline loans and letters of credit of $100 million each.
The credit facility may be expanded to $1.5 billion.
Borrowings may be made in dollars or other currencies.
Interest is equal to Libor plus an applicable margin ranging from 100 basis points to 175 bps, based on the company’s debt rating. At closing, the applicable spread was 125 bps.
In addition, the company is required to pay a commitment fee of 10 bps to 30 bps, depending on ratings, on the unused portion of the revolving facility. The commitment fee is initially 15 bps.
The credit agreement requires that the company not permit its consolidated interest coverage ratio to be less than 3.5 to 1.0 or its leverage ratio to exceed 3.75 to 1.0. However, the maximum permitted leverage ratio can be relaxed to 4.25 to 1.0 for a one-year period in connection with some material acquisitions.
In connection with the new credit agreement, RPM terminated its existing $800 million five-year revolving credit agreement on Oct. 31.
RPM is a Medina, Ohio-based company that manufactures and markets specialty chemical products for industrial and consumer markets.
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