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Shyft Group amends credit agreement for five-year revolver
By Rebecca Melvin
Concord, N.H., Dec. 1 – Shyft Group Inc. entered into an amended and restated credit agreement that provides for a five-year $400 million secured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission.
The company and subsidiaries including Shyft Group Global Inc., Utilimaster Services LLC, Shyft Group USA Inc. and Fortress Resources LLC, may also request an increase in the facility of up to $200 million, subject to customary conditions.
The credit facility signed Nov. 30 has a $20 million sublimit for letters of credit and a $10 million sublimit for swingline loans.
Interest on borrowings will be equal to Libor plus 100 basis points to 200 bps, based on the company's ratio of debt to earnings. There is also a 15 bps to 25 bps commitment fee.
The facility, maturing Nov. 30, 2026, provides for the transition to a replacement for Libor upon the occurrence of certain events.
It also contains certain customary representations and covenants, including performance-based financial covenants that may limit the company’s available borrowings under its line of credit. The agreement also prohibits the company from incurring additional indebtedness; limits certain acquisitions, investments, advances, or loans; limits the company's ability to pay dividends in certain circumstances; and restricts substantial asset sales.
The facility is secured by security interests in, and liens on, all assets of the borrowers, other than real property and certain other excluded assets.
Proceeds may be used only to refinance existing debt, consummate mergers and acquisitions, pay fees and expenses and for general corporate purposes.
Wells Fargo Bank, NA is the administrative agent, and JPMorgan Chase Bank, NA is syndication agent.
The automobile design company, formerly known as Spartan Motors, is based in Charlotte, Mich.
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