Lincoln Electric restates credit agreement to extend, expand revolver

By Marisa Wong

Morgantown, W.Va., July 6 – Lincoln Electric Holdings, Inc. amended and restated its amended and restated credit agreement dated July 26, 2012 with KeyBank NA as administrative agent on June 30 to extend the maturity of its revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the maturity date to June 30, 2022 and provides that the $400 million revolver may be increased by an additional amount up to $100 million.

The interest rate on borrowings under the amended and restated credit agreement is Libor plus a spread ranging from 67 basis points to 147.5 bps, based on the company’s consolidated leverage ratio.

The facility fee ranges from 8 bps to 22.5 bps, also based on the leverage ratio.

The Libor spread is initially 76 bps, and the facility fee is initially 9 bps.

The revolving facility may be used for general corporate purposes, including the acquisition of other businesses.

The restated credit agreement contains financial covenants relating to a consolidated fixed charge coverage ratio and consolidated total leverage ratio.

The company had no outstanding borrowings under the original credit agreement as of the effective date of the amendment, and no borrowings were outstanding under the restated facility as of July 6.

Lincoln Electric is a Cleveland-based manufacturer of welding products.

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