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TriMas Corporation (NASDAQ: TRS) – a diversified manufacturer of engineered and applied products – today announced the closing of its amended and restated credit facilities. The amended and restated credit facilities are comprised of a $250 million Senior Secured Revolving Credit facility, a $200 million Senior Secured Term Loan A facility and a $200 million Senior Secured Term Loan B facility.
Under the amended and restated credit agreement, the Term Loan A and Revolving Loans initially bear interest at LIBOR plus 2.00% (subject to a step-up to LIBOR plus 2.50% or step-down to LIBOR plus 1.50% based on leverage ratio). In addition, the maturity on the Term Loan A and the Revolving Facility have a five year term ending on October 11, 2017. The Term Loan B bears interest at LIBOR plus 2.75%, with a “LIBOR floor” of 1.00% per annum. The maturity on the Term Loan B has been extended to October 11, 2019. The refinancing process was led by J.P. Morgan.
“Due to the current attractive financial markets and the Company’s strong financial performance, we had the opportunity to refinance our credit facilities with terms that were not only better than our existing facilities, but also better than expected at the launch of refinance,” said Mark Zeffiro, TriMas’ chief financial officer. “As a result of the refinance and the reduction in borrowing rates, on a pro forma basis, we estimate annual cash interest savings of approximately $14 million. In addition, we expect TriMas to benefit from the extended credit facility maturities and enhanced liquidity and capital structure flexibility needed to best position the Company for future growth. We are pleased we received such support from both existing and new lenders. As with all aspects of our business, we are focused on continuous improvement – working to improve our profitability and drive shareholder value.”