Stanley Black & Decker gets $1 billion 364-day loan, restates revolver

By Sarah Lizee

Olympia, Wash., Sept. 14 – Stanley Black & Decker, Inc. entered into a $1 billion 364-day revolving credit loan and amended and restated its $2 billion five-year revolving credit loan on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The five-year revolver contains a sublimit of an amount equal to the euro equivalent of $653,333,333.35 for swingline advances.

Borrowings under both revolvers bear interest at a floating rate based on the one-year credit default swap mid-rate spread, subject to a floor and cap. The applicable margin is subject to a floor ranging from 25 basis points to 75 bps, depending on ratings. The cap ranges from 87.5 bps to 150 bps, also based on ratings.

The commitment fee of the 364-day revolver ranges from 3 bps to 12 bps, and the commitment fee for the five-year revolver ranges from 6 bps to 15 bps.

Borrowings on the 364-day revolver may be made in dollars or euros. Borrowings under the five-year revolver may be made in dollars, euros or pounds sterling, and borrowings under the swingline advances will be made in euros.

Advances on the 364-day revolver must be repaid by the earlier of Sept. 11, 2019 and the date the company terminates the facility commitments in whole. The company may, however, convert all advances outstanding on the termination date into a term loan due one year from the termination date.

The company must repay all advances under the five-year revolver by the earlier of Sept. 12, 2023 and the date the company terminates the facility commitments in whole. The company may request, prior to Sept. 12, 2019 and prior to Sept. 12, 2020, a one-year extension.

Each of the credit agreements require maintenance of an interest coverage ratio.

Loan proceeds under each facility may be used for general corporate purposes.

Both revolvers were undrawn at closing.

For both credit agreements, Citibank, NA, JPMorgan Chase Bank, NA, Merrill Lynch, Pierce, Fenner & Smith Inc. and Wells Fargo Securities, LLC are lead arrangers and bookrunners, and JPMorgan, Bank of America, NA, and Wells Fargo Bank, NA are syndication agents. Citibank is the administrative agent.

Stanley Black & Decker is a New Britain, Conn.-based maker of industrial tools and household hardware.

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