Global toy and entertainment company Hasbro entered into a $1.1 billion amended and restated revolving credit agreement with Bank of America as administrative agent, swing line lender, an L/C issuer and a lender.
According to the related 8-K filing, Merrill Lynch, Citibank, Citizens Bank and JPMorgan Chase Bank served as joint lead arrangers and book runners on the transaction.
The amended agreement included a potential additional incremental commitment increase of up to $500 million, extended the term of the facility from March 30, 2020 to November 26, 2023 and reduced certain fees payable under the facility. It also included swing line borrowings of up to $50 million and the issuance of letters of credit in individual amounts of up to $18.75 million and aggregate combined amounts of up to $75 million.
At the Hasbro’s election, the interest rates per annum applicable to committed loans under the agreement will be computed with reference to either a base rate or a Eurocurrency rate, in each case with an applicable margin added to such underlying rate, the margin being based on the more favorable of the company’s debt rating and the company’s consolidated total leverage ratio.
The Base Rate is a fluctuating rate equal to the highest of the federal funds rate plus one-half of 1%, the rate of interest in effect by Bank of America as its prime rate and the Eurocurrency rate for a one-month interest period plus 1%.
Based on Hasbro’s current debt ratings of BBB by S&P, Baa1 by Moody’s and BBB+ by Fitch, the current margin on base rate loans is 0.125% and on Eurocurrency rate loans is 1.125%.
Hasbro’s obligations under the amended agreement are guaranteed by its subsidiary, Hasbro International.
