Anixter arranges three credit facilities totaling $1.05 billion

By Marisa Wong

Morgantown, W.Va., Oct. 8 – Anixter Inc., a wholly owned operating subsidiary of Anixter International Inc., entered into several financing arrangements on Oct. 5 in connection with its acquisition of HD Supply’s power solutions business, according to an 8-K filing with the Securities and Exchange Commission,

The financing arrangements include a $600 million five-year revolving credit facility, a $150 million five-year asset-based revolver and a C$300 million term loan facility. The $600 million revolver has a borrowing base based on receivables, and the $150 million revolver has a borrowing base based on inventory.

New receivables facility

Anixter’s subsidiary, Anixter Receivables Corp., entered into the $600 million receivables-based revolver with JPMorgan Chase Bank, NA as administrative agent.

J.P. Morgan Securities LLC and Wells Fargo Bank, NA are the joint bookrunners and joint lead arrangers.

Drawn pricing will range from Libor plus 125 basis points when the combined availability under the receivables facility and the inventory facility (described below) is greater than $500 million to Libor plus 175 bps when combined availability is less than $250 million.

Undrawn fees will be 25 bps if greater than 50% of the facility is drawn and 37.5 bps if less than 50% of the facility is drawn.

In connection with the new facility, Anixter terminated its existing second amended and restated receivables purchase agreement with JPMorgan Chase Bank, NA as agent.

Inventory facility

Anixter entered into the $150 million inventory facility with Wells Fargo Bank, NA as administrative agent.

Wells Fargo Bank, NA and J.P. Morgan Securities LLC are the joint lead arrangers and joint bookrunners.

Drawn pricing will range from Libor plus 125 bps when the combined availability under the inventory facility and receivables facility is greater than $500 million to Libor plus 175 bps when combined availability is less than $250 million.

Undrawn fees will be 25 bps if greater than 50% of the facility is drawn and 37.5 bps if less than 50% of the facility is drawn.

Canadian term loan

Anixter’s subsidiaries, Anixter Canada Inc. and Tri-Ed ULC, are borrowers under the C$300 million five-year term loan with Bank of Nova Scotia as administrative agent and Bank of Nova Scotia and Bank of America, NA, Canada Branch as co-lead arrangers and joint bookrunners.

Drawn pricing will range from 137.5 bps to 225 bps over the BA rate, depending on consolidated leverage ranging from less than or equal to 1.25 times to greater than or equal to 3 times.

The term loan amortizes 5% in each of years one and two, 10% in each of years three and four and 70% in year five.

The borrowers initially will be subject to a maximum leverage ratio of 4.25 times and a minimum fixed charge coverage ratio of 3 times.

At closing, Anixter drew $425 million under the receivables facility and C$300 million under the term loan. Anixter used the borrowings, together with proceeds from an earlier offering of $350 million of 5½% senior notes and cash on hand, to pay the consideration for the acquisition and refinance its existing credit facility.

Also on Oct. 5, Anixter terminated and repaid its five-year revolving credit agreement dated April 8, 2011 and related second amendment and incremental facility agreement dated Aug. 27, 2014 with Wells Fargo Bank, NA as administrative agent.

Anixter is a Glenview, Ill.-based distributor of enterprise cabling and security solutions, electrical and electronic wire and cable and OEM supply fasteners and other small parts.

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