Global Brass & Copper refinances working capital and revolver

Skip to:

US-based metals manufacturer and distributor Global Brass & Copper has refinanced $303.5 million of senior secured notes and its existing revolving credit via a new $320 million seven-year loan and a $200 million five-year asset-based revolving credit. Both deals signed on July 18.

The senior secured notes were priced at 9.5% and are replaced by the seven-year loan which is priced at 425bp over Libor – a 50% saving on the original margin. The new debt will fund working capital and general corporate spend.

The facility is prepayable and is subject to a total net debt leverage ratio test of less than 4.0 (tested quarterly), an excess cash flow sweep which steps down based on the total net debt leverage ratio, and a 1% annual principal amortization.

Bank of America, Wells Fargo Bank and Deutsche Bank Securities acted as co-syndication agents for the loan, with Branch Banking and Trust Company, Keybank and William Blair & Co as co-documentation agents. JP Morgan Chase Bank joined as administrative agent.

The existing asset-based revolving credit was refinanced with a five-year deal that matures on 19 July 2021. The new revolver allows for borrowings up to the lesser of $200 million or the borrowing base. The facility features a $200 million accordion option and is priced at 125bp to 175bp over Libor, depending on availability. At closing, no borrowings under the ABL facility were outstanding.

Co-syndication agents on the revolver are Bank of America and Wells Fargo Bank, with JP Morgan Chase Bank as administrative agent.

Related analytics

Transaction Name Stage Est. Value
Osisko Gold Royalties/CAD350 million/1117 Financial close 274.00
Avanti Mining/$612 million/0814 Financial close 612.00
Dos Pinos/$100 million/1017 Financial close 100.00
Favorita/$70 million/1017 Financial close 70.00
WildHorse Resource Development/$875 million/1017 Financial close 875.00
No data available
More transactions

Trade Finance on Twitter