SPX FLOW, Inc. (NYSE: FLOW) today announced that it has completed an amendment to its US$1.35 billion senior secured credit facilities which, among other things, provides a period of covenant relief through December 31, 2018.
Key elements of the amendment include:
- Net leverage covenant increased from 4.00x to 4.75x with step-downs:
- 4.50x from 10/1/17 through 3/31/18
- 4.25x from 4/1/18 through 9/30/18
- 4.00x from 10/1/18 through 12/31/2018
- Interest coverage ratio decreased from 3.50x to 3.00x with step-ups:
- 3.25x from 4/1/17 through 9/30/18
- 3.50x from 10/1/18 through 12/31/2018
- A modest increase in the pricing grid during the covenant relief period
- Option for the Company to terminate the amendment at any time if the consolidated leverage ratio is less than or equal to 3.25x and the interest coverage ratio is greater than or equal to 3.50x.
"We are pleased with the on-going support of our lenders, including Bank of America Merrill Lynch who acted as lead bank in arranging the amended agreement," said Marc Michael, SPX FLOW President and CEO. "The amended credit facility provides us financial flexibility to continue executing our realignment program and invest in organic growth initiatives. We expect these actions will enable us to better serve our customers and drive improved operational performance even in a low growth macro environment. We are in a stable financial position with adequate liquidity and expect to be well-positioned to leverage growth when our key end markets recover," Michael concluded.
For more information, please refer to the Form 8-K filed by the Company in connection with this amendment.
About SPX FLOW, Inc.:
Based in Charlotte, North Carolina, SPX FLOW (NYSE: FLOW) is a leading global supplier of highly engineered flow components, process equipment and turn-key systems, along with the related aftermarket parts and services, into the food and beverage, power and energy and industrial end markets. SPX FLOW has more than $2 billion in annual revenues and operations in over 35 countries and sales in over 150 countries. To learn more about SPX FLOW, please visit our website at www.spxflow.com.
