Welbilt amended its senior secured credit facility, increasing the borrowing limit for the revolving credit facility to $400 million from $275 million and extending maturity date to October 23, 2023.

The term loan B facility was increased to $900 million from $815 million and the maturity date was extended to October 23, 2025. The new interest rate applicable to term B loans is LIBOR + 250 basis points, subject to a 0% LIBOR floor. Prior to the amendment, the applicable rate was LIBOR + 275 basis points, subject to a 1% LIBOR floor. Net proceeds from the increased Term Loan B facility were used to reduce outstanding borrowings under the revolving credit facility. The company also updated the financial covenants and other terms and conditions in its credit agreement.

“The amended senior secured credit facility, with an increased revolver and an increased term loan B, is a strong testament to the trust that debt investors put in our strategy and business model,” said Josef Matosevic, Welbilt’s interim President and CEO. “This amendment is an important step in fixing the capital structure that was put in place at the time of our spin-off and is consistent with our goal of creating a strong, flexible balance sheet while improving our overall financing costs.”

J.P. Morgan, BMO Harris Bank, Capital One, HSBC Bank USA and Rabobank USA, New York Branch acted as joint lead arrangers and joint bookrunners for the amendment.

Welbilt provides the world’s top chefs, premier chain operators and growing independents with industry-leading equipment and solutions.