Daily News: October 1, 2013

J.P. Morgan, Others Arrange Snap-on Multi-Currency Revolver

According to a recent 8-K filing, Snap-on Incorporated entered into a five-year, $700 million multi-currency revolving credit facility that terminates on September 27, 2018. This new facility amends and restates Snap-on’s $500 million multi-currency revolving credit facility that was set to terminate on December 8, 2016 (as of September 27, 2013, no amounts were outstanding under this facility).

The 8-K noted that J.P. Morgan Securities, Citigroup Global Markets and U.S. Bank acted as joint lead arrangers and joint bookrunners on the new facility. JPMorgan Chase Bank served as agent; Citibank and U.S. Bank served as co-syndication agents; and Mizuho Bank, Wells Fargo Bank, Barclays Bank and Royal Bank of Canada served as co-documentation agents.

Borrowings under the new facility will bear interest at varying rates based on Snap-on’s then-current, long-term debt ratings. At Snap-on’s current long-term debt ratings, the interest rate on borrowings under the new facility would be LIBOR plus 90 basis points.

The new facility requires that Snap-on maintain, as of each fiscal quarter end, (i) a ratio not greater than 0.60 to 1.00 of consolidated net debt (consolidated debt net of certain cash adjustments) to the sum of such consolidated net debt plus total equity and less accumulated other comprehensive income or loss; or (ii) a ratio not greater than 3.50 to 1.00 of such consolidated net debt to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended.