Tyco Electronics amends revolver to reduce interest, extend to 2018

By Toni Weeks

San Luis Obispo, Calif., Aug. 2 - Tyco Electronics Group SA amended its revolving credit facility on Aug. 2 with Deutsche Bank AG, New York Branch as administrative agent, according to an 8-K filing with the Securities and Exchange Commission. Parent company TE Connectivity is the guarantor under the agreement.

The amendment extends the maturity date to August 2018 from June 2016 and reduced borrowing costs. Interest is now Libor plus 80 basis points to 150 bps, with the margin based on the company's debt rating. There is a facility fee of 75 bps to 25 bps, also based on ratings.

The amended agreement includes a financial covenant requiring the company to maintain a 3.75:1.0 or lower leverage ratio, which is the ratio of the company's consolidated total debt to its consolidated EBITDA.

Tyco is a Luxembourg maker of electronic components.

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