L.B. Foster gets $200 million amended, restated five-year revolver

By Angela McDaniels

Tacoma, Wash., Sept. 26 – L.B. Foster Co. entered into an amended and restated credit agreement on Tuesday that provides for a $200 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The amended credit agreement modifies the prior revolver, which had a maximum credit line of $125 million.

The amendment increased the accordion feature to $100 million from $50 million, the amount available to Canadian subsidiaries the equivalent of $25 million from $15 million and the sublimit for issuance of trade and standby letters of credit $30 million from $20 million.

The interest rate is unchanged at Libor plus 100 basis points to 200 bps. The margin depends on the ratio of the company’s debt less cash on hand to its consolidated EBITDA.

The maximum leverage ratio was increased to 3.25 from 3 times, and the definition of leverage ratio was changed to (a) the company’s debt less cash on hand divided by the company’s consolidated EBITDA from (b) the company’s debt less cash on hand in excess of $15 million divided by the company’s consolidated EBITDA.

The minimum interest coverage ratio is unchanged at 3 times.

Stock dividends, distributions and redemptions are capped at $25 million per year – increased from $15 million – when funds are drawn on the revolver. If there are no funds drawn, stock dividends, distributions and redemptions are limited to $75 million. The $75 million cap also permits some loans, investments and acquisitions.

PNC Bank, NA is the administrative agent. Bank of America, NA and Wells Fargo Bank, NA are the syndication agents. PNC Capital Markets LLC is the lead arranger.

The Pittsburg-based manufacturer classifies its activities into three business segments: rail products, construction products and tubular products.

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