Zagg enters five-year $85 million revolver at Libor plus 125 bps

By Wendy Van Sickle

Columbus, Ohio, April 12 – Zagg Inc. entered into an amended and restated credit and security agreement providing for a five-year $85 million secured revolving credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

KeyBanc Capital Markets Inc. was the bookrunner and lead arranger. KeyBank NA is the administrative agent.

Up to $8.5 million of the revolver is available for swingline loans and up to $40 million for letters of credit.

The revolver bears interest at Libor plus a margin ranging from 125 basis points to 237.5 bps, and the commitment fee ranges from 17.5 bps to 27.5 bps, depending on the leverage ratio. The initial margin above Libor is 125 bps, and the initial commitment fee is 17.5 bps.

The credit agreement matures on April 11, 2023.

The company must comply with a leverage ratio and a fixed-charge coverage ratio.

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

Based in Salt Lake City, Zagg develops accessories for iPods and cell phones.

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