Trimble gets $1.25 billion revolver, $500 million delayed-draw loan

By Wendy Van Sickle

Columbus, Ohio, May 16 – Trimble Inc. entered into a credit agreement on Tuesday that provides for a five-year $1.25 billion unsecured revolving loan facility and a $500 million delayed-draw term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The term loans would mature on the third anniversary of their funding date and would not be subject to amortization. They would be available to be drawn only in connection with the acquisition of Portland, Ore.-based software company Viewpoint, Inc. from Bain Capital Private Equity, LP in an all-cash transaction valued at $1.2 billion.

The term loan commitments terminate on the earliest of Aug. 28, the date of the consummation of the acquisition or the termination of the merger agreement for the acquisition.

Trimble may add up to $500 million under the credit agreement in the form of either term loans or revolving commitments.

At closing, the company had $315 million of revolving loans and no term loans outstanding under the credit agreement.

Borrowings bear interest at Libor plus a margin ranging from 100 basis points to 187.5 bps, and the revolving commitment fee ranges from 10 bps to 30 bps, both depending on ratings. Term loan commitments are subject to a ticking fee of 20 bps during the ticking fee accrual period.

The revolver matures on May 15, 2023.

JPMorgan Chase Bank, NA, Goldman Sachs Bank USA and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners.

JPMorgan is the administrative agent.

Goldman Sachs and Bank of America are the syndication agents. Documentation agents are Bank of Nova Scotia, Wells Fargo Bank, NA, Compass Bank, HSBC Bank USA, NA, MUFG Bank, Ltd., PNC Capital Markets LLC, Sumitomo Mitsui Banking Corp., TD Bank, NA and U.S. Bank NA.

Trimble must comply with maximum leverage and minimum interest coverage ratios.

Revolver borrowings were used at closing to repay and terminate the company’s five-year credit agreement dated Nov. 24, 2014. Future borrowings may be used for working capital and general corporate purposes, including acquisitions.

Trimble is a Sunnyvale, Calif., technology company.

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