TriMas Corp. announced Wednesday (Dec. 16) that it has executed an amendment and restatement of its credit agreement with certain of its lenders to extend the maturity of $220.1 million of its $252.2 million in term loans from Aug. 2, 2013, to Dec. 15, 2015.
The credit agreement has also been amended for certain items, including modified financial covenant levels to improve financial flexibility and the ability to refinance existing subordinated notes with senior secured notes, according to a news release from the Bloomfield Hills, Mich.-based company.
Over 88% of the company’s existing lenders agreed to the amendment. TriMas’ borrowing costs on the extended term loans will be at LIBOR plus 4.00%, with a “LIBOR floor” of 2%. The maturity date and interest margins with respect to those term loans held by lenders that did not consent to extend the maturity of their term loans will remain unchanged.
In addition, pursuant to the amendment, certain revolving credit lenders have agreed to extend the maturity of $70 million (on an as reduced basis) out of $90 million in revolving credit commitments from Aug. 2, 2011, to Dec. 15, 2013. After giving effect to reductions in revolving commitments of certain extending revolving lenders, the company has $78 million of total revolving credit commitments. The company’s borrowing costs with respect to revolving credit loans made pursuant to such extended revolving credit commitments will be at LIBOR plus 4%, without an applicable “LIBOR floor.”
The commitment fee payable with respect to the undrawn extended revolving credit commitments will be increased to 0.75%. The maturity date and interest margins with respect to those revolving credit commitments held by lenders that did not consent to extend will remain unchanged.
“We view this refinancing as very positive for TriMas, allowing us to continue on our path of continuous improvement,” said David Wathen, TriMas president and CEO. “We have demonstrated improved operating performance via cost reduction activities and increased cash generation, allowing us to reduce debt by over $100 million through the first three quarters of 2009. We will continue this focus going forward and are pleased that we received such support from our existing lenders.”
TriMas is the parent company of Cequent Performance Products.