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TimkenSteel enters $300 million secured revolver with JPMorgan
By Jennifer Chiou
New York, July 3 – TimkenSteel Corp. entered into on June 30 a $300 million secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
JPMorgan Securities LLC and PNC Capital Markets LLC are the joint bookrunners and joint lead arrangers.
Interest will be determined by a pricing grid based on the company’s consolidated capitalization ratio and varies from Libor plus 125 basis points to Libor plus 225 bps. The initial rate will be Libor plus 150 bps. There is a commitment fee of 20 bps to 40 bps. It will initially by 25 bps.
The Canton, Ohio-based steel manufacturer said the revolver has a $50 million sublimit for multicurrency loans, a $50 million sublimit for letters of credit and a $30 million sublimit for swingline loans.
The facility matures on June 30, 2019.
The filing noted that TimkenSteel may request increases in the commitments under the credit agreement or incremental term loans in the aggregate principal amount of up to $150 million.
At the end of June, the company borrowed revolving loans in an amount equal to $100 million, which will be used to finance working capital, capital expenditures, certain permitted acquisitions and other general corporate purposes.
PNC Bank, NA is the syndication agent, JPMorgan Chase Bank, NA is the administration agent and Bank of America, NA and HSBC Bank USA, NA are co-documentation agents.
In addition, TimkenSteel completed the previously announced spinoff from the Timken Co. through a distribution of 100% of Timken’s interest in TimkenSteel to holders of Timken’s common shares.
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