Kaydon Corp. invited Bank of America to join the company's new $200 million credit facility after the bank had approached Kaydon with some non-credit related ideas, said Peter DeChants, v.p. of corporate development and treasurer. DeChants said a B of A relationship manager had been out to visit the company several times, establishing "a very effective calling program" with the Ann Arbor, Mich.-based company. He did not specify the business ideas discussed with B of A. Kaydon is a designer and manufacturer of custom-engineered products for customers in the industrial, aerospace, medical and electronic equipment and aftermarket spaces.
B of A is one of seven lenders in the syndicate for the unsecured revolver, DeChants noted. Bank One leads the deal, as it had led Kaydon's previous $300 million credit, while SunTrust Bank, Comerica Bank, Wachovia Securities, National City Bank and Northern Trust also rejoined the syndicate after being in the last facility. "We have a long time relationship with Bank One and they offered us a competitive proposal," he said, adding that Bank One was able to complete the new facility quickly so that Kaydon could have the credit done before the ratings agencies rate the company. The new three-year credit is priced a bit higher than the last deal, but the company was pleased with the final terms, DeChants also noted. All-in drawn pricing is LIBOR plus 75 basis points.
Kaydon repaid and cancelled its previous credit last May by issuing $200 million in 4% contingent convertible senior subordinated notes due 2023. The new credit, completed July 28, is in place for Kaydon and its subsidiaries for general corporate purposes including acquisitions. DeChants did not say if any specific acquisitions are being targeted for the near future.