Mac-Gray (TUC) Enters New, Expanded $250M Revolving Facility
Tweet
Share
E-mailGet Alerts TUC Hot Sheet
Join SI Premium – FREE
Mac-Gray Corporation (NYSE: TUC), announced a new and expanded senior secured credit facility. The new five-year agreement, which will mature in February 2017, consists solely of a revolving credit facility and increases Mac-Gray's revolver capacity to $250 million from its current $130 million. Approximately $100 million of revolver capacity will be used to pay off borrowings outstanding under Mac-Gray's prior credit facility. The new agreement also gives Mac-Gray the option to establish an additional $100 million of revolving credit capability.
In conjunction with this new expanded credit facility, Mac-Gray will use $102.54 million of the revolver to redeem all of its $100 million in outstanding 7.625% senior notes due August 15, 2015. The new credit facility calls for Mac-Gray to pay an interest rate of LIBOR plus a spread of between 175.0 bps and 275.0 bps, depending on the Company's leverage ratio. If there is not a significant change in short-term interest rates, Mac-Gray expects the cash payback on this bond redemption to be approximately nine months. As part of the redemption, and in addition to the $2.5 million early-payment premium, Mac-Gray will incur a one-time non-cash charge of approximately $1.2 million in its first-quarter 2012 results.
In conjunction with this new expanded credit facility, Mac-Gray will use $102.54 million of the revolver to redeem all of its $100 million in outstanding 7.625% senior notes due August 15, 2015. The new credit facility calls for Mac-Gray to pay an interest rate of LIBOR plus a spread of between 175.0 bps and 275.0 bps, depending on the Company's leverage ratio. If there is not a significant change in short-term interest rates, Mac-Gray expects the cash payback on this bond redemption to be approximately nine months. As part of the redemption, and in addition to the $2.5 million early-payment premium, Mac-Gray will incur a one-time non-cash charge of approximately $1.2 million in its first-quarter 2012 results.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boeing names Ryan Shedd as new SVP and controller
- Sigma Lithium resumes full operations after signing TAC agreement
- enVVeno Medical (NVNO) files $100M mixed shelf
Create E-mail Alert Related Categories
Corporate NewsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
