CarTech completes $500M credit facility to fund growth
Jul 02, 2013 | 04:28 PM
NEW YORK Carpenter Technology Corp. has completed a $500-million syndicated credit facility to underpin its growth strategy.
The five-year revolving line of credit replaces a $350-million revolver due to expire in June 2016, the Wyomissing, Pa.-based company said. The new facility, comprised of 10 lenders, was substantially oversubscribed prior to allocations, it added.
"Favorable markets and rates gave us the opportunity to significantly increase our financial flexibility with improved pricing and lower borrowing costs," senior vice president and chief financial officer Tony Thene said in a statement. "The completion of this $500-million credit facility contributes to having a financial structure in place that supports the companys overall growth strategy."
The terms of the facility remain largely unchanged from the previous revolver and include the same two financial covenants, debt-to-capital ratio and interest coverage ratio, the company said.