BofA Merrill Leads New $1.25B Flowserve Credit Facility
Flowserve, a provider of flow control products and services for the global infrastructure markets, announced that it has completed a new $1.25 billion, five-year credit facility, which includes a $400 million term loan and a $850 million revolver that the company can increase, subject to certain conditions, by up to $250 million.
The company said the new facility was led by Bank of America Merrill Lynch, and replaces the company’s existing facility that was scheduled to mature in December 2015.
The new $400 million term loan, which will bear an initial interest rate of LIBOR plus 150 basis points, replaces an existing $500 million term loan with an interest rate of LIBOR plus 200 basis points at June 30, 2012. Also, the new $850 million revolver, having an initial interest rate of LIBOR plus 150 basis points, replaces an existing $500 million revolver, which had an interest rate of LIBOR plus 200 basis points at June 30, 2012.
“We are pleased to announce the completion of a new credit facility as we work to execute our capital structure strategy,” said Mike Taff, Flowserve senior vice president and chief financial officer. “This new facility provides us additional debt capacity to execute on our growth initiatives, while also enhancing our operating flexibility and reducing our borrowing costs after attaining investment grade status by all three rating agencies.