IDEX Corporation (IEX) announced the completion of its $700 million new five-year senior revolving credit facility with a consortium of 12 financial institutions.
The credit facility was co-led by Bank of America (BAC), JP Morgan Chase (JPM), and Wells Fargo (WFC). The co-documentation agents included Mizuho Corporate Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd., and U.S. Bank.
The proceeds will substitute the credit facility of $600 million, which is due to expire in December 2011. As of March 31, 2011, net available borrowing under the credit facility was approximately $580.8 million.
At the end of first quarter of fiscal 2011, the amount outstanding under the credit facility was $19.2 million as compared with $27.8 million at the end of fiscal 2010.
Under the previous credit facility, the company paid interest quarterly on the outstanding borrowings, based on LIBOR (London Interbank Offered Rate) plus an applicable margin. The applicable margin was based on Index’s senior, unsecured, long-term debt rating. Additionally, an annual Credit Facility fee was charged, contingent on the company’s credit rating.
Based in Lake Forest, Illinois, IDEX Corporation manufactures and sells a wide range of pumps, flow meters, other fluidics systems and components, and engineered products worldwide. IDEX specializes in fluid and metering technologies, health and science technologies, dispensing equipment, and fire, safety and other diversified products which are custom-built.
We currently have an Outperform recommendation on IDEX Corporation. Our recommendation is supported by Zacks #2 Rank which translates into a short-term Buy rating.
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