TriMas sets Tuesday launch for $410 million credit facility

By Sara Rosenberg

New York, June 26 - TriMas Corp. has scheduled a bank meeting for Tuesday to launch its proposed $410 million senior secured credit facility, according to a market source.

Previously it was anticipated that the launch would take place early this week but exact timing had been unavailable.

JPMorgan is the lead bank on the deal.

The facility consists of a $260 million seven-year term loan B, a $100 million five-year revolver and a $50 million five-year synthetic letter-of-credit facility, with all three tranches talked at Libor plus 250 to 275 basis points.

The facility contains a $100 million accordion feature for incremental term loans.

Financial covenants will include a maximum total leverage ratio of 5.75 to 1.00 for the second, third and fourth fiscal quarters of 2006, 5.65 to 1.00 for the first and second fiscal quarters of 2007, 5.50 to 1.00 for the third fiscal quarter of 2007 and 5.25 to 1.00 for the fourth fiscal quarter of 2007.

There will also be a minimum interest coverage ratio of 1.50 to 1.00 for the second and third fiscal quarters of 2006, 1.70 to 1.00 for the fourth fiscal quarter of 2006 and the first fiscal quarter of 2007, 1.85 to 1.00 for the second and third fiscal quarters of 2007 and 1.90 to 1.00 for the fourth fiscal quarter of 2007.

Proceeds will be used to refinance the company's existing $410 million senior secured credit facility and for general corporate purposes.

TriMas is a Bloomfield Hills, Mich., manufacturer of engineered products.

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