Federal Signal Signs Proposal Letter for New Asset-Based Facility
Federal Signal Corporation, a provider in environmental, safety and transportation solutions, announced that it has signed a proposal letter that outlines certain material terms and conditions for a $215 million term loan. The company also announced it has signed a commitment letter for a $100 million senior secured asset-based credit facility.
Proceeds from the $215 million term loan and a concurrent draw from the funds available under the new asset-based credit facility will be used to repay borrowings under the company’s existing secured credit facility, outstanding debt under its private placement notes, and fees and expenses related to this refinance.
The two new facilities are expected to close before the end of the first quarter of 2012.
“This is an important step to strengthening the company’s balance sheet and providing opportunities for future growth at Federal Signal,” stated Dennis Martin, Federal Signal Corporation’s president and CEO.