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CRAWLEY, WEST SUSSEX, United Kingdom, March 27, 2013 (GLOBE NEWSWIRE) -- Edwards Group Limited (Nasdaq:EVAC) ("Edwards" or the "Company") today announced that it has completed a refinancing of its credit facilities, taking advantage of favorable market conditions to reduce the interest rate and extend the maturities of its borrowings, which comprise a $560 million term loan and a $90 million revolver facility.
As a result of this transaction, Edwards has:
Reduced the applicable interest rate on its term loan by 50bp to 350bp
Reduced USD Libor floor from 1.5% to 1.25%
Extended the maturity of the term loan facility by three years and 10 months to March 2020
Reduced the principal amount borrowed under the term loan by $18.1 million through use of cash on balance sheet
Retained a similar covenant-light profile to the previous facility, including 25bp step-down in interest rate when leverage ratio falls below 1.75x
Retained a revolver facility of $90 million, with a 25bp reduction in interest rate
In conjunction with the transaction, both credit rating agencies reconfirmed their corporate ratings view as B1/Stable (Moody's) and B+/Stable (S&P).
The transaction has been effected through Edward's wholly-owned subsidiaries Edwards (Cayman Islands I) Limited and Edwards (Cayman Islands II) Limited who have entered into an amendment and restatement agreement (the "Amendment") effective as of March 26, 2013 to amend and restate their existing credit agreement, dated as of May 31, 2007, as amended and restated (the "Credit Agreement").
The Amendment provides for, among other things, the refinancing and replacement in full of the Company's existing credit facilities with a $560 million term loan facility and an undrawn $90 million revolving facility, a reduction of the effective interest rate by 75bps to a minimum of 4.75% and the extension of the maturity date of the term loan facility and the revolving facility to March 31, 2020 and March 31, 2018, respectively. A $11.5 million tranche of the term loan due to be settled in May 2014 has also been re-paid as part of this arrangement.