Itron amended its credit facility, providing for committed credit facilities in the amount of $1.15 billion. According to a related 8-K filing, the agreement consists of a U.S. dollar term loan facility in the amount of $650 million and a multicurrency revolving credit facility in the amount of $500 million.
Wells Fargo served as administrative agent, U.S. swingline lender, U.S. issuing lender and multicurrency issuing lender for the transaction. JPMorgan Chase was multicurrency swingline lender, U.S. issuing lender and multicurrency issuing lender. J.P. Morgan Europe was multicurrency issuing lender.
The initial funding occurred on January 5, 2018, at which time $650 million of the term loan was funded, and $170 million and €55 million ($67.41 million), borrowed by a Luxembourg subsidiary of Itron, was advanced under the revolver. The proceeds of the facility were used as part of the financing of the merger consideration for the previously announced acquisition of Silver Spring Networks by Itron and to refinance the outstanding indebtedness under the prior credit agreement. In accordance with the provisions of the credit agreement, $110 million of the advances under the revolver was repaid on January 8, 2018. The revolver will be used for working capital and general corporate purposes, as well as a facility for the issuance of letters of credit.
Itron is required to make quarterly principal payments on the term loan in the amount of $4.0625 million from June 2018 through March 2019, $8.125 million from June 2019 through March 2020, $12.1875 million from June 2020 through March 2021, $16.25 million from June 2021 through December 2022, and the remainder due at maturity on January 5, 2023. All outstanding principal under the revolver is due at maturity on January 5, 2023. Principal amounts paid prior to the maturity date may be re-borrowed prior to such date.
Interest on the credit facilities is based on, at the election of Itron, an index related to LIBOR, EURIBOR (for certain advances on the revolver in foreign currencies) or the alternate base rate, in each case, plus the applicable margin. The applicable margin is determined by Itron’s total leverage ratio, as described in the credit agreement. As of the acquisition closing date, the applicable margin was 2.00% for LIBOR and EURIBOR advances and 1.00% for alternate base rate advances.
