Cintas entered into a $600 million revolving credit facility, consisting of a letter of credit sub-facility of up to $200 million and a $250 million term loan facility. As of the closing date, $450 million of the revolving credit facility was available for borrowing. The remaining $150 million will be available when one of the following occurs: the merger agreement between Cintas, G&K Services and Bravo Merger Sub is consummated, expires or is terminated.
KeyBank served as administrative agent. KeyBanc Capital Markets was joint lead arranger and joint book runner. JPMorgan Chase was joint lead arranger, joint book runner and syndication agent. The Bank of Tokyo-Mitsubishi UFJ, U.S. Bank, Fifth Third and Wells Fargo served as co-documentation agents.
The term loan facility will be funded upon the consummation of the merger, provided certain terms and conditions are satisfied. The agreement allows Cintas to request increases to the borrowing commitments under either the revolver or the term loan of up to $250 million, subject to customary conditions. The facilities replace Cintas’ existing revolving credit facility entered into on May 28, 2004.
The revolver and term loan facilities, funded upon consummation of the merger, mature in September 2021. The interest rate per annum applicable to loans under the facilities will be equal to either the base rate or the relevant Eurodollar rate for the selected interest rate period plus the applicable margin.