RACINE, Wis. — Modine Manufacturing Co. has completed the refinancing of its long-term debt.
The company has finalized a four-year, $145 million revolving credit facility with a syndication of six financial institutions led by JPMorgan Chase Bank, N.A. as Administrative Agent, LC Issuer, Swing Line Lender and as a Lender. Joining JPMorgan in the syndicate are U.S. Bank, N.A. and Wells Fargo Bank, N.A. as Syndication Agents and as Lenders, M&I Marshall & Ilsley Bank, as Documentation Agent and as a Lender and Associated Bank, N.A. and Comerica Bank as Lenders. The new credit facility also includes an accordion provision of $50 million.
Concurrent with the increase in the revolving credit facility, Modine issued $125 million of 10-year, 6.83 percent senior notes to The Prudential Capital Group. The note agreement with Prudential also provides for the issuance of an additional $25 million in notes pursuant to a currently uncommitted shelf facility. Modine used the proceeds from the sale of the notes to Prudential to prepay its outstanding notes that were due in 2015 and 2017. The company elected to make a $16.6 million interest make-whole payment to retire the former notes and expects to achieve savings of approximately $4.4 million in annual interest expense
Commenting on the transactions, Modine Vice President – Finance, CFO and Treasurer Michael Lucareli said, “We appreciate the support of our lenders in the refinancing process. These new debt facilities reflect the tremendous progress we have made during the past 12 months to strengthen our balance sheet and improve our operational performance. Further, we believe these new facilities will provide Modine greater flexibility and ample liquidity to execute our current business plans, while at the same time significantly reducing our interest costs.”
For more information about Modine, visit www.modine.com.
