Helios Technologies, Inc. (NYSE: HLIO) has announced the extension and upsizing of its credit facility, along with a reduction in borrowing spreads. The amendment and restatement of its existing term loans and revolving credit facility aim to provide the company with financial flexibility to execute its strategic priorities.
The amended credit agreement extends the debt maturity for five years to June 25, 2029, while also upsizing the company’s revolving credit facility from $400 million to $500 million. Additionally, a new $300 million term loan has been established to replace the previous term loan, and the accordion feature has been increased by $100 million to $400 million.
In terms of borrowing spreads, the amended credit agreement reduces them by a range of 25 to 50 basis points compared to the previous credit agreement, depending on the company’s net leverage ratio. Furthermore, the transitionary credit spread adjustment of 10 basis points has been eliminated.
PNC Bank, National Association served as the administrative agent for the new credit agreement. Josef Matosevic, President and CEO of Helios, emphasized the importance of an efficient debt structure in supporting the company's disciplined capital deployment and long-term value creation for shareholders.
Helios Technologies is a global leader in highly engineered motion control and electronic controls technology, serving diverse end markets. The company's growth strategy involves being the leading provider in niche markets through innovative product development and acquisition. Helios has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. Today the company's shares have moved -0.1% to a price of $48.49. For the full picture, make sure to review Helios Technologies's 8-K report.
