Commercial Metals Company (CMC) amended its credit agreement to include a $200 million delayed draw term loan. Bank of America was administrative agent, swing line lender and l/c issuer.
According to a related 8-K filing, Wells Fargo, Citibank and PNC Bank acted as co-syndication agents on the transaction, while Merrill Lynch, Pierce, Fenner & Smith, Wells Fargo Bank, PNC Bank and Citibank acted as joint lead arrangers and joint book managers.
The amendment provides for a coterminous delayed draw term loan facility in the maximum aggregate principal amount of up to $200 million, the proceeds of which will be used to finance the acquisition of certain assets and outstanding common stock from GNA Financing, repay certain existing indebtedness of GNA and pay related transaction fees and expenses.
The 2018 term loan will mature on June 23, 2022 and will generally bear interest on the same terms and conditions as the existing term loans under the credit agreement. The 2018 loan will be secured by first-priority liens on the company’s U.S. inventory and the receivables originated by its steel fabricating business.
CMC will be required to make principal payments on the 2018 term loan in quarterly installments in an amount equal to 1.25% of the original drawn principal amount after giving effect to any prepayments. Such principal payments will be due on the last business day of each of the company’s fiscal quarters following the funding date of the 2018 term loan for the life of said loan.
