Fortive obtains $2 billion five-year amended, restated revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 3 – Fortive Corp. entered into an amended and restated credit agreement with Bank of America, NA as administrative agent on Friday that provides for a $2 billion five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

An accordion feature allows Fortive to expend the revolver by up to an additional $1 billion or add up to $1 billion of term loans under the credit agreement, and there is also a multicurrency borrowing feature.

Borrowings bear interest at Libor plus a margin ranging from 80.5 basis points to 117.5 bps, and the commitment fee ranges from 7 bps to 20 bps, both depending on the company’s long-term debt credit rating.

Fortive has a one-year extension option, with the original maturity slated for Nov. 30, 2023.

The company must maintain a maximum consolidated net leverage ratio of 3.5x, with a step-up to 4x for the four fiscal quarters after an acquisition that has a purchase price over $250 million. Fortive must also maintain a minimum interest coverage ratio of 3.5x.

The company’s obligations under the credit agreement are unsecured.

The credit agreement amends and restates the company’s credit agreement dated June 16, 2016.

Citibank, NA, Sumitomo Mitsui Banking Corp., U.S. Bank NA, HSBC Bank USA, NA and BNP Paribas are the joint lead arrangers, joint bookrunners and co-syndication agents, with Bank of America Merrill Lynch also acting as a joint lead arranger and joint bookrunner.

Barclays Bank plc, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., MUFG Bank Ltd., Bank of Nova Scotia and UBS Securities LLC are the co-documentation agents.

Proceeds may be used for working capital, capital expenditures, acquisitions, share repurchases, refinancing of senior and pari passu debt and for general corporate purposes.

Fortive is an industrial growth company based in Everett, Wash.

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