Flowserve Corp. (NYSE:FLS), a leading provider of flow control products and services for the global infrastructure markets, announced today that it has completed a new $1 billion, five-year credit facility, which includes a $500 million term loan and a $500 million revolver that the company can increase, subject to certain conditions, by up to $200 million. The new facility was led by Bank of America, N.A., and replaces the company’s existing facility that was scheduled to mature in August 2012.
“We are pleased to complete this new credit facility. Although general credit markets are notably tighter than when we completed our existing facility in 2005, we are encouraged by the high level of support received from the banking community,” said Dean Freeman, Flowserve senior vice president, finance and treasurer. “By extending the maturity through 2015, the new facility supports the continued strength and stability of our capital structure. Additionally, the more favorable lending covenants will help further enhance our operating flexibility and cash flow utilization as we continue working to execute our growth strategies and drive disciplined profitable growth over the long term.”
The new $500 million term loan, which will bear an initial interest rate of the London Interbank Offered Rate (LIBOR) plus 200 basis points, replaces the existing $600 million term loan (which had approximately $539 million outstanding at refinancing) with an effective interest rate of LIBOR plus 150 basis points at September 30, 2010. Also, the new $500 million revolver, having an initial interest rate of LIBOR plus 200 basis points, replaces the existing $400 million revolver, which had an effective interest rate of LIBOR plus 87.5 basis points at September 30, 2010. The company previously reported net debt of $225 million at September 30, 2010.
About Flowserve Corp.
Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s Web site at
SAFE HARBOR STATEMENT:
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “forecasts,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.
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