TriMas closes amended $500 million revolver, $275 million term loan

By Wendy Van Sickle

Columbus, Ohio, July 1 – TriMas Corp. resized and extended its $500 million senior secured revolving credit facility and $275 million senior secured term loan A facility, according to a press release issued Wednesday by the company.

Both loans initially bear interest at Libor plus 162.5 basis points and can subsequently range from Libor plus 137.5 bps to Libor plus 200 bps, depending on leverage ratio.

The loans’ maturities were extended to June 30, 2020 from Oct. 16, 2018.

The refinancing process was led by J.P. Morgan.

The facilities’ amendments followed the company’s recent spin-off of its Cequent businesses.

“As a result of continued attractive financing markets and the approximate $215 million dividend received related to the spin-off of the Cequent businesses, we had the opportunity to extend the tenor and resize our credit facilities, while maintaining our existing favorable rate structure,” Bob Zalupski, TriMas’ chief financial officer, said in the release.

“As a result of the refinance and our lower debt level, on a pro forma basis, we estimate annual cash interest savings of approximately $4 million”.

Proceeds from the dividend and the borrowings under the amended facilities were used to partially reduce debt outstanding on the company’s existing senior secured revolving credit facility, to reduce the amount outstanding on the term loan A to $275 million from $435 million and to pay fees and expenses related to the refinance.

TriMas is a Bloomfield Hills, Mich.-based diversified manufacturer of engineered and applied products.

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