By Lisa Kerner
Charlotte, N.C., Feb. 1 - Schawk, Inc. provided additional details on its previously announced amended and restated note purchase and private shelf agreement with Prudential Investment Management, Inc. in a form 8-K filing with the Securities and Exchange Commission on Wednesday.
The Jan. 27 agreement provides for a $75 million private shelf facility for a period of up to three years.
At closing, Schawk issued $25 million of 4.38% series F senior notes due Jan. 27, 2019.
A portion of the proceeds are being used to finance $20.3 million of principal payments due in 2012 under the company's existing senior notes, including its 9.17% series E senior notes due Jan. 28, 2012.
Any future borrowings under the private shelf facility may be used for general corporate purposes such as working capital and capital expenditures, the filing said.
Notes issued under the facility may have maturities of up to 10 years and are unsecured.
The notes have a make-whole call at Treasuries plus 50 basis points, subject to a minimum of $2 million of notes.
Schawk is required to maintain a fixed charge coverage ratio of 1.20 to 1.00 and may not permit its total funded debt to EBITDA ratio to be greater than 2.75 to 1.00 for periods described in the agreement.
Based in Des Plaines, Ill., Schawk provides brand point management services.
| Issuer: | Schawk, Inc.
|
| Issue: | Series F senior notes
|
| Amount: | $25 million
|
| Maturity: | Jan. 27, 2019
|
| Coupon: | 4.38%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Jan. 27
|
| Distribution: | Private placement
|
| Purchaser: | Prudential Investment Management, Inc.
|
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