PORTLAND, Ore., June 13, 2011 /PRNewswire/ -- Blount International, Inc. (NYSE: BLT) ("Blount" or the "Company") announced today that it has amended and restated its senior credit facility. The primary terms that have been amended include an increase in the revolving credit facility from $75 million to $400 million, an increase in the Term A facility from $75 million to $300 million, a lowering of the variable interest rate on borrowings, and an extension of the maturity dates of both the Term A and revolving credit facilities to August 2016. The Company intends to repay the $273.6 million outstanding under the existing Term B facility in August 2011 utilizing proceeds from both the amended Term A and revolving credit facilities. The variable interest rate on the Term A and revolving credit facilities will be LIBOR plus 2.50% effective in August 2011 at the time of the Term B facility repayment.
The Company estimates that cash interest savings from the amended and restated senior credit facility will be approximately $7 million per year, based on current borrowing and LIBOR levels. As of May 31, 2011, the Company had $344.9 million of debt outstanding and $89.5 million of cash on hand. After repayment of the Term B facility in August, the Company estimates that it will have approximately $350 million available in borrowings under the revolving credit facility.
"The strength of the credit markets has allowed Blount to lower borrowing costs significantly and to increase borrowing capacity for the second time in the past year. The upsizing of the facility and related terms will further facilitate the execution of management's strategy for growth," said Calvin E. Jenness, Senior Vice President and Chief Financial Officer. "We are particularly appreciative of the efforts of GE Capital and each of our lenders' commitment to provide capital to support the achievement of the Company's operating goals."
GE Capital, Corporate Finance acted as the Administrative Agent, and GE Capital Markets, Inc. as Sole Bookrunner and Co-Lead Arranger, for the amendment and restatement of the senior credit facility. Bank of America, N.A. also acted as Co-Lead Arranger for the amendment and restatement of the senior credit facility.