Trinity Industries Inc. says it has renewed and extended its $425 million unsecured revolving credit facility for an additional four years. The facility was scheduled to mature in October 2012, and it will now mature in October 2016.
‘We elected to renew our facility ahead of its scheduled maturity date to take advantage of favorable conditions in the bank loan market,’ says James E. Perry, Trinity's senior vice president and chief financial officer. ‘Our bank group continues to demonstrate strong support for the company, and we remain pleased with the financial flexibility this facility provides.’
Pricing under the facility is determined by a leverage-based grid. At the company's current leverage, any borrowing under the credit facility bears interest at LIBOR plus 150 basis points or prime plus 50 basis points. Financial covenants are similar to existing covenants but no longer include a minimum net-worth requirement. Other terms and conditions remain generally unchanged.