Satellite navigation solutions specialist Trimble has issued a US$400m senior bond and is set to secure a US$1bn revolver with a US$50m letter of credit to refinance existing debt.
The US-based company’s notes, which carry a 4.75% coupon, mature in…
Satellite navigation solutions specialist Trimble has issued a US$400m senior bond and is set to secure a US$1bn revolver with a US$50m letter of credit to refinance existing debt.
The US-based company’s notes, which carry a 4.75% coupon, mature in 2024 and were priced at 99.205%.
BofA Merrill Lynch and JP Morgan are joint book-running managers for the offering, which is due to close around 24 November.
They are also being mandated for the new credit facility, with JP Morgan serving as administrative agent, which will have a five-year maturity. It will bear interest either at a base rate plus a 0-0.75% margin per annum or a reserve adjusted LIBOR or EURIBOR, depending on the currency borrowed, plus a margin of 1-1.75% per year.
Proceeds from the notes, together with borrowings under the new facility, will go towards refinancing a five-year term loan that was secured in 2012.
As of 3 October 2014, Trimble recorded US$638.8m of term loans and no revolving loans or letters of credit outstanding under the existing credit agreement.
The new facility also has covenants that requires the company to have a maximum leverage ratio of 3.00 to 1.00, although that may be increased by 0.50 to 1.00 in the case of certain material acquisitions.
Trimble has made a series of mainly bolt-on acquisitions in recent years to gain scale and build out is global presence.
Its latest deal was announced on 11 November 2014 when it snapped up British software company Amtech for an undisclosed sum.
Amtech specialises in software solutions for the mechanical, electrical and plumbing (MEP) construction industry.
The acquisition will bolster Trimble’s own portfolio of solutions for construction and engineering firms, as well as providing the Californian firm a platform to grow in Europe.
“With the addition of Amtech, Trimble continues to reinforce its goal of providing a complete portfolio of building construction solutions while strengthening our commitment to meet the unique needs of the European MEP market,” said Pat Bohle, general manager of Trimble’s MEP division.
“Amtech’s strength lies in its ability to offer localised content and pricing information combined with construction software while providing users with intuitive work processes for optimal efficiency and productivity in the office. In addition, Amtech provides Trimble the ability to expand its distribution channel in Europe to offer MEP contractor solutions.”
