Tennant amendment extends credit agreement to 2020, adjusts pricing

By Wendy Van Sickle

Columbus, Ohio, July 7 – Tennant Co. extended its credit agreement dated May 5, 2011 and made other amendments, including adjusting the pricing, on June 30, according to an 8-K filing with the Securities and Exchange Commission.

The facility’s new maturity date is June 30, 2020.

Interest now ranges from Libor plus 107.5 basis points to Libor plus 170 bps, depending on the company’s adjusted leverage ratio. Current interest is at Libor plus 107.5 bps.

The commitment fee was changed to 17.5 bps to 30 bps.

RBS Citizens, NA was removed as a co-documentation agent.

Other changes include:

•Adjusting the covenant regarding the company’s indebtedness to EBITDA ratio at the end of each quarter to not greater than 3.25 to 1;

• Adjusting the covenant restricting the company from paying dividends or repurchasing stock to allow no dividends or repurchases, if, after such payments the company’s leverage ratio is greater than 3.25 to 1; and

• Adjusting the covenant restricting the company from making acquisitions, if after giving pro-forma effect to such acquisition, the company’s leverage ratio is greater than 3.00 to 1, in such case limiting acquisitions to $25 million.

J.P. Morgan Securities LLC is the bookrunner and lead arranger. JPMorgan Chase Bank, NA is the administrative agent and collateral agent, U.S. Bank NA is the syndication agent. Wells Fargo Bank, NA is the documentation agent.

Tennant is a Minneapolis-based designer, manufacturer and marketer of cleaning solutions.

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