Celestica entered into a new $800 million credit facility with a syndicate of lenders and Bank of America as administrative agent.
The facility consists of a $350 million term loan and a $450 million revolving credit facility and will replace the company’s existing bank credit facility that was due to mature in May 2020. It includes an accordion feature, which will permit the company to increase the aggregate term or revolving loan commitments thereunder on an uncommitted basis, under specified circumstances and subject to certain conditions.
The revolving credit facility matures in June 2023, and the term loan matures in June 2025. The credit facility will be used to repay all amounts outstanding under the company’s existing bank credit facility and for other general corporate activities, including, but not limited to, capital expenditures, working capital requirements, share repurchases and/or acquisitions.
Merrill Lynch, Canadian Imperial Bank of Commerce, Citibank, Canadian Branch (with respect to the revolving credit facility), MUFG Bank, RBC Capital Markets and The Bank of Nova Scotia acted as joint lead arrangers and joint bookrunners.
Toronto-based Celestica develops, designs and manufactures hardware platform and supply chain solutions.
