Carpenter Technology said it completed a $500 million syndicated credit facility. This five-year revolving line of credit replaces the $350 million revolver due to expire in June, 2016. The new facility, comprised of ten lenders, was substantially oversubscribed prior to allocations.
Bank of America Merrill Lynch and J.P.Morgan Securities served as joint lead arrangers. Terms of the facility remain largely unchanged from the prior agreement and include the same two financial covenants, debt to capital ratio and interest coverage ratio. Pricing was materially improved as the prior 20 basis point facility fee was replaced with a 15 basis point commitment fee, which contributes to a reduction in the all-in drawn fee by 15 basis points at the current rating level.
“Favorable markets and rates gave us the opportunity to significantly increase our financial flexibility with improved pricing and lower borrowing costs,” said Tony Thene, senior vice president and chief financial officer. “The completion of this $500 million credit facility contributes to having a financial structure in place that supports the Company’s overall growth strategy.”
Carpenter Technology, based in Wyomissing, PA, produces and distributes specialty alloys, including stainless steels, titanium alloys and super-alloys, and various engineered products.