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The Manitowoc Company, Inc. (NYSE: MTW) today announced the closing of its new senior secured credit facilities in the aggregate amount of $1.05 billion. The refinancing includes a revolving facility of $500 million with a term of five years, a Term Loan “A” facility of $350 million with a term of five years, and a Term Loan “B” facility of $200 million with a term of seven years.
This new credit facility extends the maturity dates of the company’s revolving credit facility and term loans from 2016 and 2017 to 2018 and 2020, respectively. The spread over the applicable LIBOR rate paid under the new revolving and Term Loan “A” facilities at the close declined 75 basis points to 2.25 percent, or alternatively, to 1.25 percent in excess of an alternate base rate, at the company’s option.
The refinancing will also enable the company to redeem its 9.5% Senior Notes due 2018 when they reach the conclusion of their non-call period in February 2014. In combination, the new credit facility and lower interest expense from the bond redemption should result in interest savings of approximately $20 million in 2014.
About The Manitowoc Company, Inc.
Founded in 1902, The Manitowoc Company, Inc. is a multi-industry, capital goods manufacturer with over 115 manufacturing, distribution, and service facilities in 26 countries. The company is recognized globally as one of the premier innovators and providers of crawler cranes, tower cranes, and mobile cranes for the heavy construction industry, which are complemented by a slate of industry-leading product support services. In addition, Manitowoc is one of the world's leading innovators and manufacturers of commercial foodservice equipment, which includes 24 market-leading brands of hot- and cold-focused equipment. In 2012, Manitowoc’s revenues totaled $3.9 billion, with more than half of these revenues generated outside of the United States.