Dresser-Rand Amends Revolving Credit Facility
Dresser-Rand Group (NYSE: DRC) has amended its Senior Secured Credit Facility.
"We are pleased with the increased size, added flexibility and lower costs provided by this amended facility", said Robert J. Saltarelli, Dresser-Rand's vice president and treasurer. "Although we have no present expectation of increasing debt, a larger facility gives us more flexibility to execute our business plan."
The amended credit facility is a five-year, $500 million senior secured revolving credit facility. The amendment increases the size of the facility by $150 million, lowers borrowing costs 50 basis points to LIBOR plus 150 basis points at present leverage and extends the maturity date from October 29, 2011 to August 30, 2012. The amendment also reduces the commitment fee from 37.5 basis points to 30.0 basis points. At June 30, 2007, there were $202.5 million of Letters of Credit outstanding under the facility.
Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and UBS Securities LLC served as Joint Lead Arrangers.
Dresser-Rand is among the largest suppliers of rotating equipment solutions to companies that operate in the worldwide oil, gas, petrochemical, and process industries. Dresser-Rand operates manufacturing facilities in the United States, France, Germany, Norway and India and maintains a network of 26 service and support centers worldwide.
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