Gardner Denver Holdings amended its existing credit agreement, extending, increasing and repricing the borrowing capacity under its revolving credit facility. The amendment transfers the roles of administrative agent, collateral agent and swingline lender under the credit agreement to Citibank.
The amendment refinances the previously existing senior secured revolving credit facility with a replacement $1 billion senior secured revolving credit facility. The availability under the replacement facility is limited to $450 million until the closing of the company’s pending transaction with Ingersoll-Rand and will be permanently reduced to $450 million if the transaction is not completed.
In May, Gardner Denver agreed to merge with the industrial division of Ingersoll-Rand. a union that would create the world’s second-largest manufacturer of industrial pumps and compressors.
The amendment also, among other things, lowers the applicable interest rate for revolving loans under the facility (the initial applicable margin is now 2.25% for LIBOR loans and 1.25% for base rate loans); extends the maturity of the facility to June 2024; and provides for up to $200 million (and, following the completion of the transaction, $400 million) to be available for the purpose of issuing letters of credit
Milwaukee-based Gardner Denver is a global provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables and services.