Summary
Carpenter Technology Corporation (CRS) has entered into a new $200 million revolving credit facility, which can be increased to $300 million, replacing its previous agreement. This new facility extends the maturity date to November 24, 2012, and provides increased borrowing capacity for working capital and general corporate purposes. The interest rates are variable, tied to LIBOR or a Base Rate, with margins and fees dependent on the Company's debt rating. The agreement also includes financial covenants, such as minimum interest coverage and maximum debt-to-capital ratios, as well as restrictions on additional indebtedness, acquisitions, and asset disposals.
Key Highlights
- 1New $200 million revolving credit facility established, with an option to increase to $300 million.
- 2Replaces the previous credit agreement and extends maturity to November 24, 2012.
- 3Facility provides increased borrowing capacity for working capital and general corporate purposes.
- 4Interest rates are variable, based on LIBOR or Base Rate, with margins and fees tiered by Debt Rating.
- 5Includes financial covenants requiring a minimum interest coverage ratio and limiting debt-to-capital ratio to 55%.
- 6Imposes various restrictions on additional debt, acquisitions, mergers, and asset sales.
- 7The company has not yet made any borrowings under the new facility.
Frequently Asked Questions
The new revolving credit facility is designed to provide Carpenter Technology Corporation with increased borrowing capacity for working capital and other general corporate purposes. It also replaces an older agreement, extending the maturity date and potentially offering more flexible financial terms.
The facility has an initial commitment amount of $200,000,000. However, the Company has the right to request an increase in this commitment to an aggregate of $300,000,000.
The agreement includes covenants such as maintaining a minimum interest coverage ratio (starting at 3.00:1.00 and increasing) and not exceeding a debt-to-capital ratio of 55%. It also restricts additional indebtedness, certain acquisitions, mergers, and the sale of substantially all assets.
No, as of the date of this filing (November 25, 2009), Carpenter Technology Corporation had not made any borrowings under the new credit agreement.