Summary
AMETEK, Inc. (AME) announced on September 17, 2008, that it has entered into a Note Purchase Agreement to issue and sell $350 million in aggregate principal amount of senior notes in a private placement. The issuance will occur in two tranches: $250 million funded on September 17, 2008, and the remaining $100 million scheduled for December 17, 2008. These notes will have varying interest rates and maturity dates, ranging from September 2015 to December 2018. The primary purpose of this debt financing is to refinance existing indebtedness and support general corporate purposes. The new notes come with customary covenants, including restrictions on mergers, asset sales, affiliate transactions, and the incurrence of priority debt or liens. Financial covenants require AMETEK to maintain a debt-to-EBITDA ratio not exceeding 3.5:1.0 and an interest coverage ratio of at least 2.5:1.0.
Key Highlights
- 1AMETEK Inc. is issuing $350 million in senior notes through a private placement.
- 2The issuance is split into two funding dates: September 17, 2008 ($250 million) and December 17, 2008 ($100 million).
- 3Proceeds will be used to refinance existing debt and for general corporate purposes.
- 4Notes include varying interest rates (6.59% to 7.18%) and maturity dates (September 2015 and December 2018).
- 5Customary covenants limit mergers, asset sales, and incurrence of priority debt.
- 6Key financial covenants include a maximum Debt to EBITDA ratio of 3.5:1.0 and a minimum Interest Coverage Ratio of 2.5:1.0.
- 7The company may redeem notes upon certain conditions and is required to offer repurchase following a change of control.