Citizens Bank Agents Standex Revolver Amendment
Standex International announced that it has amended its $225 million unsecured revolving credit facility on improved terms, including an increase in the maximum borrowing amount to $400 million and an extension of the agreement through December 2019.
Citizens Bank acted as lead arranger and the administrative agent for the agreement with Bank of America and TD Bank acting as joint lead arrangers. JPMorgan Chase Bank and BB&T were appointed co-documentation agents.
“The terms of this amended and extended credit facility provide us increased flexibility to fund opportunities that strengthen our core segments, and that present attractive paybacks in line with our disciplined capital deployment strategy,” said Standex CEO David Dunbar. “In addition to the increased liquidity this facility provides, it also locks in current credit borrowing spreads in a favorable credit market.”
Under the amended agreement, at the company’s current leverage level, the agreement carries an interest rate of LIBOR plus 100 basis points per annum, plus 0.1% of undrawn fees. The covenants of the agreement remain substantially similar to those of the previous credit facility, and the company’s ability to borrow under the facility remains subject to continued compliance with all covenants under the agreement.
Standex International is a multi-industry manufacturer in five broad business segments food service equipment group, engineering technologies group, engraving group, electronics products group and hydraulics products group.