According to an 8K filed with the SEC, Bank of Montreal will serve as administrative agent and issuing bank, Fifth Third will serve as co-syndication agent and issuing bank, and Regions Bank will serve as co-syndication agent for an additional $41.9 million of capacity on Blue Bird’s revolving credit facility. This brings the total revolving commitments to $141.9 million. The additional revolving commitments will be used for working capital and to fund general corporate purposes.
“We appreciate the support and commitment of our banking partners. This increase is a proactive measure taken to address uncertainty around the coronavirus pandemic,” Phil Horlock, president and CEO of Blue Bird, said. “We were comfortable with our strong level of liquidity at $100 million of commitments but felt it was prudent to secure additional liquidity as insurance in light of the unprecedented pandemic we are facing with the coronavirus.”
The interest rate pricing grid remains unchanged, but the LIBOR floor was amended from 0% to 0.75%. The credit facility is scheduled to mature on September 13, 2023.
Blue Bird is a designer and manufacturer of school buses, with more than 550,000 buses sold since its formation in 1927 and approximately 180,000 buses in operation today.
