Interviews
News Flash
PGI obtains consents to amend its senior secured credit facility
28 Jul '09
3 min read
Polymer Group Inc (PGI) announced that lenders holding approximately $303.0 million of its approximately $350.0 million term loan and $30.0 million of its $45.0 million committed revolving credit facility elected to extend the maturity dates of their commitments via an amendment and extension transaction.
The extended term loan will mature in November 2014 and bears an interest rate of LIBOR plus 4.5%. The extended revolving credit facility will mature in November 2013 and bears an interest rate of LIBOR plus 4.5%. If outstanding borrowings under the original term loan tranche that matures November 2012 exceed $10.0 million on August 2012, the new revolving credit facility tranche will mature August 2012.
The amendment will, among other things:
• Allow for additional term loan tranches that extend the maturity date of other term loan tranches under the credit agreement;
• Allow for additional revolving credit facility tranches that extend the maturity date of other revolving credit facility tranches under the credit agreement;
• Permit the incurrence of additional first lien debt in order to refinance term loan tranches under the credit agreement;
• Remove the future step-downs or step-ups in the company's financial covenants; and
• Result in a repayment of $24.0 million of outstanding borrowings under the term loan .
Other terms of the amendment include the establishment of a LIBOR floor of 2.5% for the new term loan and revolving credit facility tranches; price protection for the new term loan tranche requiring a matching yield if any future term loan tranches are established at yields at least 25 basis points above the new term loan tranche; and changes to certain definitions and baskets related to permitted investments, acquisitions and assets sales.
PGI's chief executive officer, Veronica "Ronee" Hagen, stated, "We view our successful completion of this transaction as a reflection of PGI's strong position in our markets and improved financial position. The company will be better positioned and equipped to execute on its long-term strategic plan as a result."
Robert J. Kocourek, chief financial officer, added, "Prudent balance sheet management is a core focus for PGI. The changes in our capital structure have resulted in an improved financial profile and lessen any medium term financing requirements."
Citi acted as sole lead arranger in connection with the amendment and extension. The company also engaged North Sea Partners as financial advisors on the transaction.
The closing of the amendment is subject to typical closing conditions and is expected to occur by the end of this month.
The extended term loan will mature in November 2014 and bears an interest rate of LIBOR plus 4.5%. The extended revolving credit facility will mature in November 2013 and bears an interest rate of LIBOR plus 4.5%. If outstanding borrowings under the original term loan tranche that matures November 2012 exceed $10.0 million on August 2012, the new revolving credit facility tranche will mature August 2012.
The amendment will, among other things:
• Allow for additional term loan tranches that extend the maturity date of other term loan tranches under the credit agreement;
• Allow for additional revolving credit facility tranches that extend the maturity date of other revolving credit facility tranches under the credit agreement;
• Permit the incurrence of additional first lien debt in order to refinance term loan tranches under the credit agreement;
• Remove the future step-downs or step-ups in the company's financial covenants; and
• Result in a repayment of $24.0 million of outstanding borrowings under the term loan .
Other terms of the amendment include the establishment of a LIBOR floor of 2.5% for the new term loan and revolving credit facility tranches; price protection for the new term loan tranche requiring a matching yield if any future term loan tranches are established at yields at least 25 basis points above the new term loan tranche; and changes to certain definitions and baskets related to permitted investments, acquisitions and assets sales.
PGI's chief executive officer, Veronica "Ronee" Hagen, stated, "We view our successful completion of this transaction as a reflection of PGI's strong position in our markets and improved financial position. The company will be better positioned and equipped to execute on its long-term strategic plan as a result."
Robert J. Kocourek, chief financial officer, added, "Prudent balance sheet management is a core focus for PGI. The changes in our capital structure have resulted in an improved financial profile and lessen any medium term financing requirements."
Citi acted as sole lead arranger in connection with the amendment and extension. The company also engaged North Sea Partners as financial advisors on the transaction.
The closing of the amendment is subject to typical closing conditions and is expected to occur by the end of this month.
Polymer Group Inc
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
