Thermon Industries unit adds $100 million incremental term loan facility

By Mary Katherine Stinson

Lexington, Ky., Jan. 2 – Thermon Industries, Inc. entered a third amendment to its amended and restated credit agreement on Dec. 29, according to an 8-K filing with the Securities and Exchange Commission.

The amendment changes the facility to provide a new incremental term loan facility to the U.S. borrower Thermon Holding Corp. and reset the accordion feature to allow the incurrence of additional incremental term loans and incremental revolving commitments not to exceed $100 million.

Other modifications include the replacement of the CDOR with the Canadian Overnight Repo Rate Average as the benchmark rate for term benchmark loans denominated in Canadian dollars and implementing corresponding technical changes, permitting Canadian borrower Thermon Canada Inc. to borrow under the existing revolver in Canadian dollars and permitting the issuance of letters of credit to the Canadian borrower.

The amendment also expands the definitions of specified cash management agreement and specified swap agreement to provide for the inclusion of agreements between any U.S. borrower’s subsidiary.

The $100 million secured term loan A is offered to Thermon Holding on substantially the same terms as the existing U.S. term A loans, but with a pricing increase across the grid of 37.5 basis points above the pricing of the existing loans.

The maturity date remains Sept. 29, 2026.

Proceeds of the incremental U.S. term loans were used at closing to finance the acquisition of Vapor Power International and its affiliates, refinance certain debt of the target and pay fees and expenses incurred by Thermon Holding.

JPMorgan Chase Bank, NA is the administrative agent.

Thermon is a San Marcos, Texas-based provider of highly engineered thermal solutions, known as heat tracing, for process industries, including energy, chemical processing and power generation.

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