Valvoline amends, restates $1.05 billion secured credit facilities

By Sarah Lizee

Olympia, Wash., April 17 – Valvoline Inc. entered into an amendment and restatement agreement on April 12 with Bank of Nova Scotia as administrative agent, providing for $1.05 billion in senior secured credit facilities, according to an 8-K filing with the Securities and Exchange Commission.

The facilities consist of a five-year $575 million term loan A and a five-year $475 million revolver.

The revolver includes a $100 million letter-of-credit sublimit.

Interest is initially Libor plus 150 basis points. The margin will range from 137.5 bps to 200 bps, depending on credit ratings or the consolidated first-lien net leverage ratio, whichever yields a higher rate.

The unused fee is 20 bps initially. It will range from 17.5 bps to 30 bps, based on the same terms as the interest margin.

After the effective date, the term loan will be fully drawn and the revolver will be undrawn.

Term loan proceeds will be used, among other things, to prepay in full the term A loan and revolver under the original credit agreement, and to pay amounts outstanding under one of Valvoline’s receivables facilities, with any remaining proceeds to be used for general corporate purposes. Revolver proceeds will be used for working capital and general corporate purposes.

The borrower is a Lexington, Ky.-based supplier of automotive lubricants

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