CTS obtains five-year $200 million revolver, replaces prior facility

By Wendy Van Sickle

Columbus, Ohio, Aug. 12 – CTS Corp. entered into a five-year $200 million unsecured revolving credit agreement Monday, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest initially at Libor plus 150 basis points and can vary from Libor plus 100 bps to 200 bps, based on the leverage ratio.

There is a commitment fee of 30 bps initially and it can range from 20 bps to 40 bps.

BMO Capital Markets acted as the bookrunner. It and Bank of America, NA acted as lead arrangers, BMO Harris Bank, NA as administrative agent, Bank of America as syndication agent and Wells Fargo Bank, NA as documentation agent.

The facility has a $100 million accordion feature. There is a swingline sublimit of $15 million and a letter of credit sublimit of $10 million.

The credit agreement requires CTS to maintain a maximum total leverage ratio of 3.5 to 1 and a minimum fixed charge coverage ratio of 1.25 to 1.

The facility replaces the company’s previous $200 million facility that was set to mature in January 2017. The $93 million of outstanding borrowings under that facility were refinanced under the new agreement, and the existing agreement was terminated.

CTS is an Elkhart, Ind.-based electronic components and sensors company.

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