Satellite navigation solutions specialist Trimble has entered into an amended and restated five-year US$1.4bn credit facility.
The financing is split between a US$700m revolving credit facility and a US$700m term loan and replaces the company’s…
Satellite navigation solutions specialist Trimble has entered into an amended and restated five-year US$1.4bn credit facility.
The financing is split between a US$700m revolving credit facility and a US$700m term loan and replaces the company’s previous US$1.1bn bank facility, which was secured in 2011 and comprised a US$700m revolver and US$400m term loan.
Under the new agreement, either the revolver or the term can be increased by up to US$300m at Trimble’s discretion.
Proceeds from the loans will be used for working capital needs and other general corporate purposes, including the financing of potential acquisitions.
Indeed, approximately US$192m of the previous term loan is thought to have been used to fund Trimble’s US$335m cash acquisition of TMW Systems, a developer of enterprise software for the transportation and logistics sector, which was announced in August.
At the beginning of November, Trimble announced that it had acquired US-based 5D virtual construction software consultancy Vico Software for an undisclosed amount.
Commenting on the new financing, Rajat Bahri, Trimble’s chief financial officer said: “We are pleased with the considerable interest demonstrated by the participating banks to increase and extend our bank credit facility. The revised facility provides us with increased flexibility and improved terms.”
JP Morgan, Bank of Nova Scotia and Wells Fargo Securities were mandated lead arrangers on the transaction.
