Under the proposed transaction, the company’s revolving credit facility would increase by $100m to $500m. Including updated term loans, the facilities will total $1.15bn. The refinancing will include both Term Loan A and Term Loan B facilities, with normal amortisation schedules for each.
In addition to the reduction in the interest rate, the refinancing would extend the maturity date of the company’s revolving credit facility and term loans from 2013 and 2014 to 2016 and 2017, respectively.
“Our decision to proactively take advantage of the strong debt markets will allow us to further improve our capital structure and financial flexibility, while realising significant interest cost savings,” said Glen E Tellock, Manitowoc’s chairman and CEO. “These changes, combined with the debt refinancing actions taken in 2010, provide the company with the necessary flexibility to execute on our business strategy and capitalise on new opportunities to create shareholder value amid global economic recovery and growth.”
Source: The Manitowoc Company
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