This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Federal Signal Corporation Announces New Senior Secured Credit Facilities

OAK BROOK, Ill., March 14, 2013 /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS), a leader in environmental and safety solutions, today announced that it has successfully completed the refinancing of its existing senior secured credit facilities with new senior secured credit facilities (the "Senior Secured Pro Rata Agreement"), consisting of a five-year, $150 million revolving credit facility and a five-year, $75 million fully funded term loan A facility.

(Logo: http://photos.prnewswire.com/prnh/20120420/CG91760LOGO)

"I am delighted with the result of our debt refinancing efforts and the much improved capital structure of Federal Signal," said Dennis Martin, Federal Signal's president and chief executive officer.  "We received strong demand in the bank market allowing us to take advantage of very favorable rates.  This transaction strengthens our balance sheet and affords us the flexibility needed to achieve our goals in growing the Company.  We have a very strong bank group that will benefit Federal Signal for years to come." 

Wells Fargo Bank, N.A. is the administrative agent for the Senior Secured Pro Rata Agreement and GE Capital, Corporate Finance is the syndication agent.  Wells Fargo Securities, LLC and GE Capital Markets, Inc. are joint lead arrangers and joint book managers.

The opening interest rate for both the $75 million fully funded senior secured term loan A and the $150 million senior secured revolving credit facility is LIBOR plus a margin of 2.75%.  The Company estimates it will save more than $10 million of interest expense per annum.  The Company also estimates it will record an $8.7 million charge in the first quarter of 2013 related to the termination of its prior debt agreements.  The charge includes a non-cash write-off of deferred financing costs of $4.6 million and a cash prepayment premium of $4.1 million.  The Senior Secured Pro Rata Agreement is subject to affirmative, negative and financial covenants and other customary conditions. 

About Federal SignalFederal Signal Corporation (NYSE: FSS) enhances the safety, security and well-being of communities and workplaces around the world. Founded in 1901, Federal Signal is a leading global designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and commercial customers. Headquartered in Oak Brook, Ill., with manufacturing facilities worldwide, the Company operates three groups: Safety and Security Systems, Environmental Solutions and Fire Rescue. For more information on Federal Signal, visit: http://www.federalsignal.com.

SOURCE Federal Signal Corporation

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs