Powell Industries upsizes revolver to $150 million, makes other edits

By Wendy Van Sickle

Columbus, Ohio, Oct. 11 – Powell Industries, Inc. amended its amended and restated credit agreement on Oct. 4 with Bank of America, NA as administrative agent to increase the revolving line of credit to $150 million from $125 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also adds Texas Capital Bank as syndication agent and a lender; amends terms related to the calculation of the company’s consolidated net leverage ratio to provide that up to $60 million may be deducted from the company’s consolidated funded indebtedness, which is a component of the consolidated net leverage ratio, based on the lesser of the amount of letters of credit outstanding and 60% of the company’s available, unencumbered cash; adds some terms related to a specified cash collateral trigger event in the event a customer files a claim for indemnity, performance or payment in an amount equal to or greater than $40 million under an applicable surety bond as a result of a breach under the underlying contract; decreases the SOFR adjustment to 10 basis points; and amends the financial covenant relating to the company’s liquidity to require the maintenance of no less than $60 million of liquidity.

BofA Securities, Inc. is the lead arranger and bookrunner.

Powell is a provider of packaged solutions for the control, monitoring, and distribution of electrical power and other critical processes with headquarters in Houston.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.