Flowserve Begins Refinancing Initiative
Flowserve Corp. announced it is commencing a major refinancing effort and has entered into a commitment agreement letter with Bank of America and Merrill Lynch & Co. to borrow up to $1 billion, consisting of up to $400 million of a revolving credit facility and up to $600 million of term debt.
This refinancing commitment for the full amount is subject to customary conditions, and the refinancing has an expected closing date in mid-August.
The company plans to use the proceeds from the borrowing, assuming completion, to refinance at a lower blended interest rate its existing Terms A and C debt, its existing revolving credit facility and its outstanding 12.25% Senior Subordinated Notes.
"These actions clearly demonstrate our continuing focus to lower our debt cost and to enhance the flexibility of our capital structure," said Chief Financial Officer Mark A. Blinn. "In our view, this refinancing shows our continuing strong relationship with our credit providers."
Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.
Source: Flowserve Corporation