Federal Signal, a provider of environmental and safety solutions, completed a new five-year, $800 million credit facility to replace its existing $500 million credit facility. Wells Fargo will serve as administrative agent, swingline lender and issuing lender for the facility.

The new facility is comprised of a $675 million revolving credit facility and a $125 million term loan facility. The arrangement also provides Federal Signal with the ability to further expand its borrowing capacity by up to the greater of $400 million and 100% of consolidated EBITDA for the applicable four-quarter period preceding such expansion notice, subject to approval by applicable lenders.

“We are extremely pleased to announce this new credit facility, which provides greater financial flexibility to invest in internal growth initiatives and pursue additional acquisitions,” Jennifer L. Sherman, president and CEO of Federal Signal, said. “The terms of the new facility are more favorable to the company, reflecting our strong cash flow and balance sheet. This marks another important milestone for the company as we continue to execute on our strategic long-term growth objectives.”

The syndication of the new facility was completed with Wells Fargo Securities, PNC Capital Markets and Truist Securities acting as joint lead arrangers and joint bookrunners. PNC Bank, and Truist Bank are syndication agents, and JPMorgan Chase and TD Bank are documentation agents.