TriMas Corporation, a diversified global manufacturer of engineered and applied products, announced that it has initiated the process to refinance its existing credit facilities and launch a tender offer for its existing 9.75% second lien notes due 2017. The new credit facilities are expected to be comprised of a $250 million senior secured revolving credit facility, a $150 million senior secured term loan A facility and a $250 million senior secured term loan B facility. The company plans to close the transaction during the fourth quarter of 2012. J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner and Smith are arranging the financing.
Proceeds from the new facilities are expected to be used to refinance the company’s existing $125 million senior secured revolving credit facility, $218 million senior secured term loan B and $200 million 9.75% second lien notes due 2017.
“Due to the current attractive financial markets and the company’s enhanced performance, we believe TriMas has the opportunity to refinance our credit facilities with terms that would be beneficial for the future of TriMas,” said Mark Zeffiro, TriMas’ chief financial officer. “We expect TriMas to benefit from immediate and significant interest savings, extended maturities and the liquidity and capital structure flexibility needed to best position the Company for future growth. This is one of our many efforts to continuously improve TriMas.”