C.H. Robinson ups revolver, extends maturity, amends pricing grid

By Marisa Wong

Morgantown, W.Va., Oct. 25 – C.H. Robinson Worldwide, Inc. entered into an amendment on Oct. 24 to its existing credit agreement with a group of lenders led by U.S. Bank NA to increase the revolving credit facility and extend the maturity date, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the amount of the revolver to $1 billion from $900 million.

The increase does not affect the letter-of-credit subfacility, which remains at $50 million, or the accordion feature that allows the company to increase the aggregate commitments under the facility by $500 million.

However, the swingline subfacility was increased to $75 million from $50 million, and a $300 million multicurrency subfacility was added to the facility.

The amendment also extends the maturity date to Oct. 24, 2023 from Dec. 31, 2019.

In addition, the amendment changes the interest rate and fee structure under the credit agreement. While the range of interest rate margins remains the same, 87.5 basis points to 150 bps, the exact margins will be determined based on the company’s ratings rather than on a ratio of consolidated funded debt to consolidated EBITDA.

Commitment fees were reduced to a range of 7.5 bps to 20 bps, also to be based on ratings rather than the ratio of consolidated funded debt to consolidated EBITDA.

The amendment also modifies the leverage covenant contained in the credit agreement.

Under the existing leverage covenant, the company is required to maintain a ratio of consolidated funded debt to consolidated EBITDA as of the end of each fiscal quarter of no more than 3.00 to 1.00, subject to a one-time step-up to 3.50 to 1.00 in connection with any permitted acquisition.

If the holders of the company’s senior notes agree to substantially the same change, the loan amendment provides that the ratio of consolidated funded debt to consolidated EBITDA will increase to a maximum of 3.50 to 1.00, subject to a one-time step-up to 4.00 to 1.00 in connection with any permitted acquisition.

C.H. Robinson is a logistics company based in Eden Prairie, Minn.

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