Tennant Co signs $650 million revolving credit facility maturing August 7, 2029
Tennant Company entered a Second Amended and Restated Credit Agreement with JPMorgan Chase Bank as administrative agent, providing a senior secured revolving facility of up to $650 million through August 7, 2029. The facility can be expanded by up to $325 million and is secured by substantially all of the company's personal property and pledged subsidiary stock, which adds lender-related obligations and covenants that shareholders should note.
- Revolving facility up to $650 million, maturing August 7, 2029, with an option to expand by up to $325 million
- Borrowings in U.S. dollars priced off prime rate, NYFRB Rate or Adjusted Term SOFR, with spreads depending on leverage ratio
- Covenants include a maximum indebtedness to EBITDA ratio of 3.75 to 1.00 and a minimum EBITDA to interest expense ratio of 3.00 to 1
- Dividends and stock repurchases are limited when leverage exceeds 2.50 to 1, capped at the greater of 10% of consolidated total assets and $100 million per fiscal year