Dover obtains $500 million term loan for acquisition of Wayne Fueling

By Wendy Van Sickle

Columbus, Ohio, Sept. 20 – Dover Corp. entered into a $500 million unsecured term loan facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The term loan was led by joint lead arrangers and bookrunners JPMorgan Chase Bank, NA, Bank of America Merrill Lynch and Wells Fargo Securities, LLC. JPMorgan is administrative agent, and Bank of America, NA and Wells Fargo Bank, NA are the syndication agents.

The term loan may be used to fund the acquisition of Wayne Fueling Systems, Ltd. or to refinance debt incurred in connection with the acquisition. The commitments terminate on the earliest of the drawing of the term loans, the 10th business day after the closing of the acquisition and Dec. 31.

Interest will accrue at Libor plus a margin ranging from 75 basis points to 100 bps, depending on Dover’s credit ratings. There is a commitment fee of 7 bps per annum.

Dover must maintain a minimum ratio of EBITDA to consolidated net interest expense of 3 times.

Dover is a Downers Grove, Ill.-based manufacturer of industrial, engineering, fluid management and electronic technical components and equipment.

Austin, Texas-based Wayne is a provider of fuel dispensing, payment, systems and aftermarket services for retail and commercial fuel stations.

Dover announced plans in June to purchase Wayne from Riverstone Holdings LLC for $780 million.

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