CA Inc. restates $1 billion revolver due 2022 at Libor plus 100 bps

By Marisa Wong

Morgantown, W.Va., June 28 – CA, Inc. amended and restated its $1 billion unsecured revolving credit facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, JPMorgan Chase Bank, NA and Morgan Stanley MUFG Loan Partners, LLC are the joint lead arrangers and joint bookrunners, with Citibank, NA as administrative agent; Bank of America, NA, JPMorgan and Morgan Stanley MUFG as co-syndication agents; and Barclays Bank plc, BNP Paribas, HSBC Bank USA, NA, Keybank NA, PNC Bank, NA, Bank of Nova Scotia, U.S. Bank NA and Wells Fargo Bank, NA as documentation agents.

The amended and restated credit agreement comprises commitments from 18 banks.

The credit facility expires June 27, 2022. However, the company may extend the expiration date for additional one-year terms with the written consent of lenders having at least 50% of the commitments.

The company also has the option to request an increase in the aggregate commitments of up to $500 million.

Borrowings will bear interest at Libor plus 79.5 basis points to 130 bps, depending on the company’s credit ratings. At the company’s current ratings, the applicable margin would be 100 bps.

In addition, the company must pay facility fees ranging from 8 bps to 20 bps, also based on ratings. The facility fee is currently 12.5 bps.

The restated credit agreement contains two financial covenants: (i) for the 12 months as of any date, the ratio of consolidated debt for borrowed money to consolidated cash flow must not exceed 4.00 to 1.00, and (ii) for the 12 months as of any date, the ratio of consolidated cash flow to the sum of interest payable on, and amortization of debt discount in respect of, all consolidated debt for borrowed money must not be less than 3.50 to 1.00.

CA is an information technology company based in New York.

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