ThermaClime extends $50 million working capital revolver, cuts rate

By Susanna Moon

Chicago, April 9 - ThermaClime LLC lowered the interest rate on its $50 million working capital revolving facility to Libor plus 150 basis points, with a rate of 2.22% as of Friday, and extended the maturity until April 13, 2017.

The rate will rise to Libor plus 175 bps if there is less than $25 million available under the revolver.

The company also secured a lower unused line fee and saw an adjustment on its borrowing base calculation.

ThermaClime amended its credit agreement, effective last Wednesday, with Wells Fargo Capital Finance, Inc. as the arranger and administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

As of Friday, the amount available under the working capital revolver was about $49 million.

The changes also increased the cap on the amount of permitted debt, investments and annual distributions from ThermaClime to the parent company, LSB Industries, Inc., or fellow subsidiary Consolidated Industries Corp. for certain management services to $7.5 million from $5 million.

Also under the new terms, the prepayment penalty as well as the minimum EBITDA covenant and the senior leverage coverage ratio covenant were deleted.

Term loan amendment

The company also amended its $75 million term loan agreement with Banc of America Leasing & Capital, LLC, effective last Wednesday.

Under the new terms, the cap was increased on the company's permitted debt, investments and annual distributions to $7.5 million from $5 million.

As of Friday, the outstanding principal balance of the loan was about $71.3 million.

ThermaClime is an Okalahoma City-based manufacturer and seller of climate control and chemical products.

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