Flowserve Completes $1.25 Billion Credit Facility
The new facility replaces the company's existing facility that was scheduled to mature in December 2015
DALLAS, August 20, 2012 -- Flowserve Corp. (NYSE:FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced that it has completed a new $1.25 billion, five-year credit facility, which includes a $400 million term loan and a $850 million revolver that the company can increase, subject to certain conditions, by up to $250 million. The new facility was led by Bank of America Merrill Lynch, and replaces the company's existing facility that was scheduled to mature in December 2015.
The new $400 million term loan, which will bear an initial interest rate of the London Interbank Offered Rate (LIBOR) plus 150 basis points, replaces the existing $500 million term loan (which had approximately $463 million outstanding at refinancing) with an interest rate of LIBOR plus 200 basis points at June 30, 2012. Also, the new $850 million revolver, having an initial interest rate of LIBOR plus 150 basis points, replaces the existing $500 million revolver, which had an interest rate of LIBOR plus 200 basis points at June 30, 2012. The company previously reported net debt of $622 million at June 30, 2012.
"We are pleased to announce the completion of a new credit facility as we work to execute our capital structure strategy," said Mike Taff, Flowserve senior vice president and chief financial officer. "This new facility provides us additional debt capacity to execute on our growth initiatives, while also enhancing our operating flexibility and reducing our borrowing costs after attaining investment grade status by all three rating agencies. With the support of this new facility, we continue to evaluate additional, cost-effective debt financing as we implement our stated long-term gross leverage ratio target of 1.0x-2.0x total debt to EBITDA and execute on our announced $1 billion share repurchase program."
Technical Contact: Mike Mullin, director, investor relations, (972) 443-6636
Media Contact: Steve Boone, director, global communications and public affairs, (972) 443-6644
