Itron, a supplier of automatic meter readers for the water and energy sectors, is repricing its loan. Bear Stearns and Wells Fargo Bank are leading the deal. The facility, which hit the market in December 2003 and closed in July 2004, initially consisted of a seven-year, $180 million term loan and a five-year, $55 million revolver. The term loan has since been paid down to $130 million. It is being repriced to LIBOR plus 1 3/4% from LIBOR plus 2 1/4%. The revolver will not change.
In conjunction with the repricing, the banks modified the covenants for the second and third quarter of 2005. The changes were required due to the seven month delay in the closing date. The loan was taken out to fund the acquisition of Schlumberger Electricity Metering for $255 million. The closing was delayed as Itron waited for approval from the Federal Trade Commission (LMW, 4/23). Marc Williams, treasurer, declined comment.