This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Federal Signal Corporation Announces New Senior Secured Credit Facilities

Stocks in this article: FSS

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

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs