PNC Arranges OM Group $350MM Facility
OM Group announced that it entered into a new five-year senior secured revolving credit facility, replacing its previous credit facility that was scheduled to expire in August 2016. The facility was arranged by PNC Bank, with participation from nine other banks with existing relationships with the company.
The new facility provides for $350 million of revolving borrowing capacity and includes an expansion option of up to an additional $150 million, subject to certain conditions.
Borrowings under the facility are subject to a pricing grid with initial borrowings priced at LIBOR plus 112.5 basis points.
“We are pleased to have the support of our banks for our growth strategy, including synergistic acquisitions,” said Christopher M. Hix, chief financial officer of OM Group. “This new credit facility includes attractive pricing and flexibility, recognizing our strong financial condition and more predictable business profile following the recent divestitures of our commodity businesses. The new facility, along with existing cash balances and future cash flows, gives us ample capacity to fund our operating and strategic growth.”
OM Group is a technology-based industrial growth company serving attractive global markets, including automotive systems, electronic devices, aerospace, industrial and renewable energy.