Columbus McKinnon is a material handling company headquartered in New York. Established over 140 years ago, the company offers a wide range of products and services including hoists, cranes, and rigging tools. Such a venture requires substantial capital, and Columbus McKinnon has been able to raise funds through several means including borrowing.
In August 2021, Columbus McKinnon entered into a credit agreement with a group of lenders to secure a revolving credit facility worth $375 million. The new credit agreement replaces a previous one, which was set to expire in August 2022. According to the company, the new credit facility will be used to support growth initiatives and to provide liquidity for general corporate purposes.
The credit agreement has a term of five years, expiring in August 2026. It includes a provision that allows for an extension of the maturity date by an additional year if certain conditions are met. The agreement also includes a financial covenant that requires Columbus McKinnon to maintain a minimum level of earnings before interest, taxes, depreciation, and amortization (EBITDA). The covenant helps to ensure that the company can service its debt obligations.
The lenders involved in the credit facility include Bank of America, N.A., Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A., and PNC Bank, National Association. The agreement contains customary representations, warranties, and covenants between the borrowers and the lenders.
The credit agreement is an important milestone for Columbus McKinnon as it provides the company with access to flexible funds that can be used to support growth initiatives and other corporate purposes. It also helps to ensure that the company can meet its debt obligations and maintain its financial stability.
In conclusion, the Columbus McKinnon credit agreement is a significant development for the material handling company. The new credit facility will provide the company with much-needed liquidity to support growth initiatives and corporate operations. It also demonstrates the confidence that lenders have in Columbus McKinnon`s financial standing and future prospects.