Sun Hydraulics (SNHY) entered into new $500 million senior secured credit facilities. PNC Bank led the syndicate on the facilities.
The new facilities replace the company’s previous credit facilities and consist of a $400 million revolving credit facility and $100 million term loan.
SNHY drew approximately $258 million of the revolver to partially finance its acquisition of the Faster Group, a manufacturer of quick-release hydraulic coupling solutions. Combined with the term loan and cash on hand, the total acquisition cost of the Faster Group came to roughly $530 million.
“The establishment of these credit facilities not only provided us with the needed funding to close on the Faster acquisition, they also offer us liquidity to support our growth plans over the next five years,” said Tricia L. Fulton, SNHY’s CFO. “Our plans are to generate cash flows from operations to repay the outstanding debt as quickly as possible, maintaining our financial strength.”
