BorgWarner enters restated $1.5 billion five-year credit agreement

By Marisa Wong

Los Angeles, March 16 – BorgWarner Inc. entered into a fourth amended and restated credit agreement on Friday with Bank of America, NA as administrative agent for a $1.5 billion unsecured revolver, according to an 8-K filing with the Securities and Exchange Commission.

BofA Securities, Inc., Citibank, NA, Deutsche Bank Securities Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners for the restated credit agreement. Citibank, Deutsche Bank Securities, PNC Bank, NA and Wells Fargo Bank, NA are co-syndication agents. Bank of America, NA is administrative agent.

The maximum principal amount may be automatically increased by an additional $500 million once the company closes its acquisition of Delphi Technologies plc.

The credit agreement amends and restates the company’s third amended and restated credit agreement dated June 29, 2017 with Bank of America, NA as administrative agent.

Commitments under the restated credit facility mature on March 13, 2025.

Interest is equal to Libor plus 69 basis points to 110 bps, depending on the company’s debt ratings.

The facility rate ranges from 6 bps to 15 bps.

The credit agreement includes a financial covenant requiring the company to maintain a consolidated leverage ratio of not more than 3.50 to 1.00. Upon closing of certain acquisitions, the company may temporarily increase the consolidated leverage ratio to 3.75 to 1.00.

Any proceeds from the credit facility will be used for general corporate purposes. At closing of the amendment, no new borrowings were made and no loans were outstanding under the existing credit agreement.

BorgWarner is an Auburn Hills, Mich.-based manufacturer and seller of engineered automotive systems and components.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.