Trimble obtains $175 million loan via Scotia Capital

By Sara Rosenberg

New York, June 25 - Trimble obtained a new $175 million secured credit facility. Scotia Capital was the lead arranger on the deal that contains a nine bank syndicate.

The facility consists of a $125 million three-year revolver and a $50 million four-year term loan. The current interest rate on the loan is approximately 3% to 3.25%.

The deal had been oversubscribed and due to this strong market demand, the company increased the size of the facility to $175 million from $150 million and closed syndication early.

Proceeds will be used to retire all outstanding debt on its existing credit facility and the outstanding principal and accrued interest related to its 10.4% subordinated note due July 2004. The unused portion of the revolver can be used for general corporate purposes.

"We accomplished several objectives with this new credit facility," said Mary Ellen Genovese, chief financial officer, in a news release. "The early payment of our subordinated note will generate significant interest savings over the next 12 months, as well as reduce our quarterly debt service requirement. Additionally, the new facility will provide access to capital on attractive terms which will allow us to efficiently fund our growth objectives."

Trimble is a Sunnyvale, Calif. Global Positioning System technology company.

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