Tower International enters $150 million amended, restated revolver

By Marisa Wong

Madison, Wis., June 20 - Tower International, Inc. entered into a second amended and restated revolving credit and guaranty agreement on June 19 with JPMorgan Chase Bank, NA as issuing lender, swingline lender and administrative agent. The agreement provides for an up to $150 million asset-based revolving credit facility due June 19, 2018, according to an 8-K filing with the Securities and Exchange Commission.

The new credit facility agreement amends and restates Tower's amended and restated revolving credit and guaranty agreement dated June 13, 2011.

Interest is equal to Libor plus a margin based on the average availability under the revolving credit facility over the preceding three consecutive months. The margin ranges from 175 basis points to 225 bps. As of June 19, the margin is 200 bps.

The credit agreement contains a financial maintenance covenant ratio based on the ratio of consolidated adjusted EBITDA to consolidated fixed charges. Specifically, if less than the greater of 10% of the total commitment, currently $150 million, and $12.5 million is available under the facility for more than two consecutive days, the company is required to maintain a consolidated fixed-charge coverage ratio of not less than 1 to 1 on a rolling four-quarter basis. This requirement will end after more than 10% of the total commitment is available for 20 consecutive days.

JPMorgan Chase Bank, NA is the administrative agent under the restated credit agreement; J.P. Morgan Securities LLC and Wells Fargo Capital Finance, LLC are joint bookrunners and joint lead arrangers; Wells Fargo Capital Finance is syndication agent; and Citibank, NA and Goldman Sachs Bank USA are co-documentation agents.

Tower International, previously known as Tower Automotive, LLC, is a Livonia, Mich.-based supplier of automotive metal structural components and assemblies.

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