ITASCA, Ill. — Midas Inc. has signed a three-year extension of its existing unsecured revolving credit facility with a bank group led by JP Morgan Chase Bank.
The existing five-year credit agreement, which was due to expire in 2010, has been extended to October 2013, with no material changes in existing covenants. The extended facility is for $125 million. Initial pricing for the revolver has increased from LIBOR plus 175 basis points to LIBOR plus 350 basis points, reflecting current market rates.
At the end of the third quarter, Midas’ bank debt was $77.4 million. Total debt, including capital and finance leases, was $111.3 million.
“The bank group’s willingness to extend our line of credit nearly a year in advance of its due date is evidence of the banks’ confidence in the financial stability and business model of the company,” said William Guzik, Midas’ executive vice president and chief financial officer. “The company’s ongoing priority is to use cash flow to reduce our debt.”
Other banks in the group are PNC Bank, Bank of America, BB & T and Northern Trust.
