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Briggs & Stratton amends, restates five-year $500 million revolver
By Wendy Van Sickle
Columbus, Ohio, March 30 – Briggs & Stratton Corp. entered into a five-year $500 million amended and restated multicurrency revolving credit agreement on Friday, according to an 8-K filing with the Securities and Exchange Commission.
The company may increase availability under the facility by up to $250 million in either additional revolving or term loan commitments with lender approval.
JPMorgan Chase Bank, NA is the administrative agent.
Borrowings will bear interest at Libor plus a margin that will depend upon the company’s average net leverage ratio.
The commitment fee ranges from 17.5 basis points to 35 bps, and the letter-of-credit fee ranges from 62.5 bps to 225 bps.
At closing, the company had $1.1 million of borrowings outstanding under the facility and $4.9 million in outstanding letters of credit.
The company is required to maintain availability under the credit agreement in an amount at least equal to the amount outstanding under the commercial paper facility, which was about $31.3 million at closing.
Briggs & Stratton must maintain a maximum ratio of average funded debt to consolidated net income of 3.5 times on the last day of any fiscal quarter and a minimum ratio of EBITDA four consecutive fiscal quarters to consolidated interest expense of 3 times, which may be increased in connection with an acquisition of at least $100 million.
Proceeds will be used for general corporate purposes.
The credit agreement replaces the company’s multicurrency credit agreement dated Oct. 13, 2011.
Based in Wauwatosa, Wis., Briggs & Stratton makes gasoline engines for outdoor power equipment.
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