Global Brass & Copper refinances working capital and revolver

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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.

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