Carpenter Technology completed a $350 million syndicated credit facility by amending and restating its existing credit agreement, which had been set to expire on March 31, 2024. The new credit facility extends the maturity to April 12, 2028. The amended facility also included an increase to $350 million from $300 million.
Bank of America and JPMorgan Chase Bank served as the joint lead arrangers for the facility, with Bank of America continuing to serve as administrative agent.
In addition to increasing the size of the credit facility, there are changes to certain terms of the credit facility from the prior agreement, including modifications to the financial covenants. Carpenter Technology is required to maintain a consolidated net leverage ratio. Requirements carried over from the existing facility include maintaining a minimum interest coverage ratio.
In addition, Carpenter Technology entered into an amended and restated security agreement in connection with the credit facility that creates a security interest in substantially all of the personal property of the company for the benefit of the secured parties under the credit facility.
