REV Group receives $550 million revolver at Libor plus 175 bps

Chicago, April 13 – REV Group, Inc. entered into a credit agreement for a $550 million senior secured asset-based revolver on Tuesday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a $30 million sublimit for swingline loans and a $35 million sublimit for letters of credit. An additional $20 million of letters of credit may be provided at the issuing bank’s discretion.

An aggregate amount of $100 million of incremental facilities are permissible.

The maturity date is April 13, 2026.

Interest is Libor plus 175 basis points, based on a grid that takes into account the company’s fixed charge coverage ratio. The grid ranges from Libor plus 150 bps to 200 bps.

The unused line fee rate varies between 25 bps and 37.5 bps.

The lenders under the credit facility have a first priority security interest in substantially all personal property assets and certain real property assets of the company. The credit facility’s borrowing base is comprised of eligible receivables and eligible inventory, plus a fixed asset sublimit of certain eligible real property and eligible equipment, which fixed asset sublimit reduces by quarterly amortization as specified in the credit agreement.

Joint bookrunners and joint arrangers are JPMorgan Chase Bank, NA, U.S. Bank NA and BMO Harris Bank, NA.

JPMorgan and BMO Harris are co-collateral agents. CIBC is the co-documentation agent.

REV Group is a Milwaukee-based designer, manufacturer and distributor of specialty vehicles and related aftermarket parts and services.

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