Timken gets $400 million term loan, $750 million revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 6 – Timken Co. amended and restated its credit agreement on Tuesday with Bank of America, NA and KeyBank NA as co-administrative agents, providing for a $400 million unsecured term loan facility and a $750 million unsecured revolver due Dec. 5, 2027, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s previous revolver dated June 25, 2019. Proceeds will be used to refinance the existing revolver; to repay in full all obligations outstanding under that credit agreement dated Sept. 11, 2018 with KeyBank as administrative agent, consisting of $312,812,500 in outstanding principal plus accrued interest, which was originally set to mature on Sept. 11, 2023; and for general corporate purposes.

Pricing is based on a grid that specifies a margin above SOFR that varies with the company’s credit rating. The margin ranges from 79.5 basis points to 142.5 bps for the revolver and 87.5 bps to 162.5 bps for term loans.

The facility fee ranges from 8 bps to 20 bps, also based on ratings.

Financial covenants require the company to maintain a consolidated leverage ratio and a consolidated interest coverage ratio.

Timken is a Canton, Ohio-based mechanical components engineering, manufacturer and marketing company.

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