Daily News: October 15, 2012

TriMas Closes Amended Credit Facilities Led by J.P. Morgan


TriMas Corporation, a diversified manufacturer of engineered and applied products announced the closing of its amended and restated credit facilities. The amended and restated credit facilities are comprised of a $250 million senior secured revolving credit facility, a $200 million senior secured term loan A facility and a $200 million senior secured term loan B facility.

Under the amended and restated credit agreement, the term loan A and revolving loans initially bear interest at LIBOR plus 2.00% (subject to a step-up to LIBOR plus 2.50% or step-down to LIBOR plus 1.50% based on leverage ratio). In addition, the maturity on the term loan A and the revolving facility have a five-year term ending on October 11, 2017. The term loan B bears interest at LIBOR plus 2.75%, with a LIBOR floor of 1.00% per annum. The maturity on the term loan B has been extended to October 11, 2019. The refinancing process was led by J.P. Morgan and includes J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner and Smith.

“Due to the current attractive financial markets and the company’s strong financial performance, we had the opportunity to refinance our credit facilities with terms that were not only better than our existing facilities, but also better than expected at the launch of refinance,” said Mark Zeffiro, TriMas’ chief financial officer. “As a result of the refinance and the reduction in borrowing rates, on a pro forma basis, we estimate annual cash interest savings of approximately $14 million. In addition, we expect TriMas to benefit from the extended credit facility maturities and enhanced liquidity and capital structure flexibility needed to best position the company for future growth. We are pleased we received such support from both existing and new lenders. As with all aspects of our business, we are focused on continuous improvement – working to improve our profitability and drive shareholder value.”

Proceeds from borrowings under the amended and restated facilities were used to refinance the company’s existing $125 million senior secured revolving credit facility and $218 million senior secured term loan B and to pay fees and expenses related thereto.

In addition, pursuant to the company’s previously announced tender offer and consent solicitation, $176.5 million aggregate principal amount, representing 88.3% of the aggregate principal amount outstanding, of the company’s 9.75% Senior Secured Notes due 2017 had been tendered along with the related consents.

Previously on abfjournal.com:

J.P. Morgan, Merrill Lynch to Refinance TriMas Credit Facilities, Thursday, September 20, 2012