Esterline gets $460 million five-year revolver at Libor plus 175 bps

By Angela McDaniels

Tacoma, Wash., March 15 - Esterline Technologies Corp. entered into a $460 million five-year revolving credit facility on Friday, according to an 8-K filing made with the Securities and Exchange Commission on Tuesday.

The interest rate is Libor plus 150 basis points to 225 bps, and the commitment fee is 30 bps to 40 bps. Both depend on leverage. Initial pricing is Libor plus 175 bps with a 30 bps commitment fee.

The company can increase the credit facility by up to $250 million through an increase in the revolver or through the addition of term loans.

There is a $100 million sublimit for letters of credit and a $15 million swingline subfacility.

Under the revolver's financial covenants, the company's leverage ratio cannot exceed 4.25 to 1.

Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are the joint lead arrangers. Wells Fargo, Merrill Lynch, Union Bank, NA and US Bank, NA are the joint bookrunners. Wells Fargo Bank, NA is the administrative agent.

At closing, the company had drawn $115 million under the revolver and had $2.61 million of letters of credit.

Proceeds will be used to refinance debt and for working capital and other general corporate purposes.

Bellevue, Wash.-based Esterline makes products and systems for the aerospace and defense, industrial/commercial and medical markets.

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