Trimble Navigation has scored a new $175 million secured credit facility consisting of a three-year, $125 million revolver and a four-year, $50 million term loan. Scotia Capital leads the credit. The facility was oversubscribed, which enabled the GPS device maker to increase the facility from $150 million to $175 million and close syndication early, said John Huey, Trimble's treasurer. He attributed the oversubscription both to Trimble's good performance over the last year--the Sunnyvale, Calif.-based company has steadily de-levered and reduced debt to two times EBITDA--and to pent-up market demand for a company with Trimble's size and performance. "There are not many deals being done in the market, so there is all this money sitting there and it gets thrown at you," Huey said. "We literally kept ducking the stuff," he added.
Scotia replaced ABN Amro as the lead mid-term on Trimble's previous $200 million facility. "ABN was replaced because they were exiting a market for BB companies and Trimble wasn't getting the service they needed," Huey explained. Trimble did not look at any bank other than Scotia to lead the new deal as the company was satisfied with the service in its old facility and felt that Scotia offered the best terms. Fleet Bank, GE Capital, Union Bank of California, Bank of America, US Bank, Allied Irish Bank, Wells Fargo Bank and Nordea Bank complete the syndicate.
The new facility will be used to retire all outstanding debt on Trimble's old $200 million facility, which comprised a $100 million term loan and a $100 million revolver and to retire all outstanding debt on its 102/5% senior notes due in 2004 from its purchase of Spectra Precision in 2000. Pricing on the deal is currently at LIBOR plus 13/4% Officials at ABN did not return calls.