Daily News: December 21, 2017

BofA Agents $900MM SPX Facility


SPX entered into an amendment of its credit agreement, resulting in a five-year, $900 million credit facility with a group of lenders led by Deutsche Bank AG Deutschlandgeschäft Branch as foreign trade facility agent and Bank of America as administrative agent

Funds available under the amended agreement were used to repay all outstanding borrowings under the original agreement which was executed in mid-2015.

The amended credit agreement will expire on December 19, 2022 and consists of a $350 million term loan, a $350 million revolving credit facility and two foreign trade credit facilities totaling $200 million. The term loan requires mandatory payments of original principal of 1.25% per quarter beginning in Q1/19. Interest on borrowings is based on Libor plus a margin (currently 175 basis points) that varies with the company’s net leverage covenant.

Scott Sproule, SPX’s chief financial officer, commented, “I’m pleased with the result of the amendment to our credit agreement that we completed with our banking partners. Based on the improved financial performance of SPX since the spin in late 2015, and taking advantage of attractive market conditions, we were able to negotiate terms that significantly enhance our financial flexibility as we execute on our stated growth and value creation initiatives, including acquisitions. This amendment also extends our maturity schedule and reduces near-term cash debt service requirements.”

SPX is a supplier of engineered products and technologies, holding positions in the HVAC, detection and measurement and engineered solutions markets.