Manitowoc launches amendment

Manitowoc has inked an amendment to its US$2.63bn JP Morgan-led credit facility. For each fiscal quarter ending between September 30 2009 and June 30 2012, the amendment reduces the minimum consolidated interest coverage ratio from 2.75x–3x to 1.875x–2.75x. For each fiscal quarter ending between June 30 2009 and September 30 2012, it also increases the maximum consolidated total leverage ratio from 3.5x–4x to 4x–7.375x.

Manitowoc has also added a new covenant. For each fiscal quarter ending on or after June 30 2011, it must maintain consolidated senior secured leverage of 3.5x–5.25x. In addition, the company’s option to increase borrowings under the revolver and term loan A has been eliminated. Going forward, the company will be limited in its ability to pay dividends and make acquisitions. Mandatory prepayment requirements have also been increased.

In return, Manitowoc has agreed to pay each lender a 50bp amendment fee and increase pricing from 200bp–325bp to 375bp–500bp, based on consolidated total leverage.

On May 15, the company announced that it had sold its Enodis ice machine operations to Warburg Pincus. After-tax net proceeds of approximately US$150m were slated to repay part of its US$181.5m term loan X, which matures in April of 2010. The company expects retiring the remaining portion of term loan X later this year using cashflow from operations.

Manitowoc completed its US$2.925bn acquisition facility in August 2008. Proceeds financed the acquisition of Enodis. Deutsche Bank, Morgan Stanley and BNP Paribas also participated in the loan financing. It comprised a US$400m five-year revolver, a US$900m five-year term loan A, a US$300m 18-month term loan X and a US$1.325bn term loan Y. The institutional tranches originally paid 350bp over Libor and were offered at 98 OID. The pro rata paid Libor plus 325bp. Pricing increased by 50bp after a previous amendment took place in December.

GE Capital

, meanwhile, will be providing Spectrum Brands with a US$242m exit financing. The facility will be secured by the company’s current assets and will replace the current US$235m debtor-in-possession (DIP) facility. The financing is subject to customary conditions including the confirmation of the plan of reorganisation by the bankruptcy court. Spectrum and its US subsidiaries filed for Chapter 11 in Texas on February 3 2009. The company’s non-US operations are not included in the bankruptcy proceedings.

Dutch media concern VNU, which in early 2007 changed its name to Nielsen, has inked an amendment that will allow the company to extend maturities on US$1.25bn of its US$4.1bn seven-year term loan B. The amendment will also provide the company with covenant flexibility. Citigroup leads the deal.

As per the amendment, the US$1.25bn loan will extend maturities from 2013 to 2016. In return, the company will bump up pricing to Libor plus 375bp from Libor plus 225bp. The company did not pay an amendment fee.

The amendment also allowed for the issuance of a US$500m term loan that will be used to repay portions of the remaining loan at par.

S&P assigned a B+ rating to the US$1.25bn loan, one notch above the B corporate rating. The US$500m financing will not be rated by the ratings agency.

In July 2007, Citigroup launched a US$400m add-on for the company’s US TLB piece. The add-on was launched at Libor plus 200bp. Proceeds from the tranche, which included a full covenant package, funded Nielsen’s acquisition of telecoms market research firm Telephia.

In August 2006, also through Citigroup, the company launched a roughly US$6bn buyout facility for the Netherlands-based media company. AlpInvest Partners, Blackstone Group, Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts and Thomas H Lee Partners bought VNU for €9.4bn (US$11.3bn).

The financing also included a US$687.5m six-year revolver, a €800m seven-year term loan B and a US$650m eight-year 10% bond issue. Deutsche Bank led the bond offering.