Daily News: September 14, 2018

KeyBank Provides $350MM Facility for Timken


The Timken Company amended its credit facility to include a $350 million term loan facility to support its upcoming acquisition of Rollon Group.

According to a related 8-K filing, KeyBank served as administrative agent for the transaction. Keybanc Capital Markets and Wells Fargo Securities were joint lead arrangers and joint bookrunners. Wells Fargo Bank was syndication agent.

The term loan matures on September 11, 2023. The company borrowed the full amount available under the term loan facility on Sept. 11, 2018 and intends to use the proceeds to finance a portion of the purchase price of its acquisition of Rollon. The company is required to make quarterly principal payments under the term loan in the amount of $2.1875 million beginning on November 30, 2018.

The interest will be based on either LIBOR or the base rate (as defined in the credit agreement), plus, in either case, an applicable margin determined by the company’s debt rating.

Timken engineers, manufactures and markets bearings, gear drives, automated lubrication systems, belts, chain, couplings and related products and offers a spectrum of powertrain rebuild and repair services.