Posted June 28, 2010
Kennametal signs $500 million loan agreement
Kennametal Inc. announced the signing of a $500 million five-year credit agreement.
This syndicated bank facility amends and restates Kennametal's prior loan agreement. It contains favorable pricing and enhanced liquidity relative to the company's amended 2006 agreement.
"We are pleased with our banking partners' confidence in and support of Kennametal and its business outlook. This five year transaction meaningfully extends our debt maturity profile and provides long-term funding stability," saidd Kennametal vice president and chief financial officer Frank Simpkins. Kennametal intends to use these funds for general corporate purposes and to refinance the company's revolving credit facility that was scheduled to mature in March 2011.
Bank of America N.A. is acting as joint lead arranger and administrative agent for the transaction. PNC Bank, National Association and JPMorgan Chase Bank, N.A. are also joint lead arrangers and co-syndication agents. The agent group is completed by Citizens Bank of Pennsylvania and Bank of Tokyo Mitsubishi UFJ Trust Company in their capacity as co-documentation agents.
