Clarcor enters into $150 million multicurrency revolver due 2017

By Angela McDaniels

Tacoma, Wash., April 9 - Clarcor Inc. refinanced its $250 million revolving credit facility with a $150 million five-year multicurrency revolver on Thursday, according to an 8-K filing made with the Securities and Exchange Commission on Monday.

The new revolver has a $100 million accordion feature, a $50 million sublimit for letters of credit and a $10 million swingline facility.

The initial pricing is an interest rate of Libor plus 55 basis points and a commitment fee of 12 bps. The margin over Libor ranges from 55 bps to 110 bps, and the commitment fee ranges 12 bps to 23 bps. Both depend on the company's leverage ratio.

Borrowings can be made in dollars, euros, British pounds sterling or any other currency that the company and the lenders agree on.

Bank of America, NA is the administrative agent. Bank of America Merrill Lynch is the arranger and bookrunner.

Proceeds will be used to repay amounts outstanding under the old revolver and for working capital and other general corporate purposes.

The maturity date is April 5, 2017.

Borrowings under the revolver are guaranteed by substantially all of the company's material domestic subsidiaries.

Under the credit facility's financial covenants, the company must maintain a ratio of consolidated funded debt to consolidated EBITDA of not more than 3 to 1 and a ratio of consolidated EBIT to consolidated net interest expense of not less than 3 to 1.

Clarcor is based in Franklin, Tenn. It makes mobile, industrial and environmental filtration products and consumer and industrial packaging products.

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