Thomas & Betts enters into $500 million revolver, freezes old facility

By Aleesia Forni

Columbus, Ohio, Aug. 18 - Thomas & Betts Corp. entered into a new $500 million revolving credit facility on Aug. 11 and agreed an amendment to its existing revolver the blocks new borrowings, according to an 8-K filing with the Securities and Exchange Commission.

The new credit facility has a five-year term, expiring on August 10, 2016, with availability of $500 million.

Borrowings based on Libor will bear interest at a rate equal to Libor plus 85 basis points to 155 bps, depending on the company's credit rating.

The company will also incur a facility fee equal to 15 bps to 32.5 bps, also dependent upon its credit rating.

JPMorgan Chase Bank, N.A. is the administrative agent, and Wells Fargo Bank, NA and Bank of America, NA are co-syndication agents. J.P. Morgan Securities LLC., Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are joint bookrunners and joint lead arrangers

The new credit facility requires Thomas & Betts to maintain a maximum leverage ratio of 3.75 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00.

The amendment to the existing credit facility eliminates any new borrowings from the original availability of $750 million.

The amendment also freezes the $325 million borrowed under this existing credit facility.

Wells Fargo Bank NA is the administrative agent of the existing facility.

Thomas & Betts is a Memphis-based electrical, steel and HVAC product company.

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