WFCF Amends IES Facility, Provides New Term Loan
Integrated Electrical Services (IES) announced that it amended its credit and security agreement with Wells Fargo Capital Finance to include a new two-year, $5 million term loan and a one-year extension of the revolving credit facility to August 9, 2016.
IES will use the proceeds from the term loan as well as $5 million of cash from its balance sheet to fully retire the $10 million of senior subordinated notes held by Tontine Capital Overseas Master Fund II.
While the term loan bears interest at a per annum rate equal to daily three month LIBOR plus 6%, the company and Wells Fargo intend to enter into an interest rate swap, whereby the company will cause the interest rate for borrowings under the term loan to be fixed at 7% per annum.
The combination of the new term loan and the retirement of the senior subordinated notes is expected to positively impact both free cash-flow and the company’s earnings per share.
Integrated Electrical Services is an infrastructure services company.