The Manitowoc Co. last week announced plans to refinance its existing senior secured credit facilities to further improve the strength and flexibility of its capital structure, including a reduction in the interest rate paid on outstanding borrowings compared to rates under its current facilities.
Under the proposed transaction, the company’s revolving credit facility would increase by $100 million to $500 million. Including updated term loans, the facilities will total $1.15 billion. The refinancing will include both Term Loan A and Term Loan B facilities, with normal amortization schedules for each. In addition to the reduction in the interest rate, the refinancing would extend the maturity date of the company’s revolving credit facility and term loans from 2013 and 2014 to 2016 and 2017, respectively.
“Our decision to proactively take advantage of the strong debt markets will allow us to further improve our capital structure and financial flexibility, while realizing significant interest cost savings,” said Glen Tellock, Manitowoc’s chairman and CEO. “These changes, combined with the debt refinancing actions taken in 2010, provide the company with the necessary flexibility to execute on our business strategy and capitalize on new opportunities to create shareholder value amid global economic recovery and growth.”
Headquartered in Manitowoc, Wis., The Manitowoc Co. is a multi-industry, capital goods manufacturer with nearly 100 manufacturing, distribution, service, and/or office facilities in 26 countries. It manufactures lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks.