The Manitowoc Co. this week closed its new senior secured credit facilities. Under the transaction, the company’s revolving credit facility increased by $100 million to $500 million. Including updated term loans, the facilities total $1.25 billion. The refinancing includes a Term Loan A facility of $350 million and a Term Loan B facility of $400 million, with normal amortization schedules for each.
This new credit facility reduces the interest rate paid on outstanding borrowings resulting in approximate 2011 cash interest savings of $10 million, while also extending the maturity dates of the company’s revolving credit facility and term loans from 2013 and 2014 to 2016 and 2017.
“Our ongoing capital market activities coupled with our proactive capital structure management over the last few years have improved Manitowoc’s financial position and flexibility, resulting in longer term maturities, increased liquidity, and lower interest rates,” said Glen Tellock, Manitowoc’s chairman and CEO. “Going forward, we are in an excellent position to execute on our long-term growth objectives and expand our global leadership in both our Crane and Foodservice segments.”
Headquartered in Manitowoc, Wis., the Manitowoc Co. manufactures lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. It is also a leading manufacturer of commercial foodservice equipment.