Insituform Technologies, Inc. Enters Into New $500 Million Credit Facility
Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU)
(“Insituform” or the “Company”) today announced that it has entered into
a new $500 million credit facility with a syndicate of banks,...
Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) (“Insituform” or the “Company”) today announced that it has entered into a new $500 million credit facility with a syndicate of banks, with Bank of America, N.A. serving as the administrative agent and JPMorgan Chase Bank, N.A. serving as the syndication agent. The credit facility consists of a $250 million five-year revolving credit line and a $250 million five-year term loan facility. The entire amount of the term loan was drawn by the Company on August 31, 2011 for the following purposes: (1) to pay the $115.8 million cash purchase price of the Company’s acquisition of the North American business of Fyfe Group, LLC, which transaction closed on August 31, 2011; (2) to retire $52.5 million in indebtedness outstanding under the Company’s prior credit facility; (3) to redeem the Company’s $65.0 million, 6.54% Senior Notes, due April 2013, and pay the associated $5.6 million make-whole payment due in connection with the redemption of the Senior Notes; and (4) to fund expenses associated with the new credit facility and the Fyfe North America transaction. This new facility replaces the Company’s existing $115 million facility. Merrill Lynch Pierce Fenner & Smith Incorporated and JPMorgan Securities LLC acted as joint lead arrangers and joint book managers in the syndication of the credit facility. In addition to Bank of America and JPMorgan Chase Bank, the participating banks in the syndicate are Fifth Third Bank, Regions Bank, US Bank, PNC Bank, BBVA Compass, KeyBank, Bank of the West, Associated Bank, HSBC Bank USA, Branch Banking and Trust Company, Comerica Bank, National Bank of Kuwait and Stifel Bank and Trust. Generally, interest will be charged on the principal amounts outstanding under the credit facility at the British Bankers Association LIBOR rate plus an applicable rate ranging from 1.50% to 2.50% depending on the Company’s consolidated leverage ratio. The Company also can opt for an interest rate equal to a base rate (as defined in the credit documents) plus an applicable rate, which also is based on the Company’s consolidated leverage ratio. The applicable LIBOR borrowing rate (LIBOR plus Company’s applicable rate) as of August 31, 2011 was approximately 2.58%.
Insituform Technologies (Nasdaq:INSU) hit a new 52-week low Friday as it is currently trading at $11.49, below its previous 52-week low of $11.61 with 334,164 shares traded as of 10:20 a.m. ET. Average volume has been 479,300 shares over the past 30 days.
Shares of Insituform Technologies (Nasdaq:INSU) were gapping down Thursday morning with an open price 11.2% lower than Wednesday's closing price. The stock closed at $13.22 yesterday and opened today's trading at $11.74.
Insituform Technologies (Nasdaq:INSU) hit a new 52-week low Wednesday as it is currently trading at $12.98, below its previous 52-week low of $13.01 with 342,541 shares traded as of 3:46 p.m. ET. Average volume has been 480,400 shares over the past 30 days.