Generac Completes Amended/Restated Secured Facility

June 3 -- Generator maker Generac announced this morning it had completed the refinancing of its senior secured term loan credit facility and, as it previously promised, will use part of the proceeds to pay investors a special dividend of $5.00 per share, payable on June 21 to stockholders of record on June 12.

Generac said the refinancing resulted in it incurring $1.2 billion of senior secured term loans that replaced its prior term loan facilities. The new term loans will mature in 2020, with interest initially accruing at LIBOR plus 2.75% with a LIBOR floor of 0.75%. Moreover, beginning in the second quarter of 2014, the spread to LIBOR of the new term loans can be reduced to LIBOR plus 2.50% if its net debt leverage ratio falls below 3.0 times.

Generac also obtained a one-year extension to the maturity date of its existing $150 million senior-secured, asset-based revolving credit facility. The extended revolving credit facility will terminate in 2018, but will continue to accrue interest on drawn proceeds using an "availability-based pricing grid" starting at LIBOR plus 2%.

As previously announced, the generator maker intends to use approximately $342 million of the proceeds from the new term loans to fund a special cash dividend to its stockholders of $5.00 per share. The company does not pay a regular dividend on its common stock. The remaining funds will be used for general corporate purposes and to pay related financing fees and expenses.

As a result of the closing on the $1.2 billion of senior secured term loans, the Company is updating its guidance for interest expense for the full-year 2013. Interest expense is now expected to be in the range of $55.0 to $57.0 million, which includes $50.0 to $51.0 million of debt service costs, at current LIBOR rates, plus $5.0 to $6.0 million for deferred financing cost and original issue discount amortization. Interest expense during the third quarter of 2013, the first full quarter under the new capital structure, is expected to be approximately $13.0 million, which includes approximately $2.0 million of deferred financing costs and original issue discount amortization.

Briggs and Stratton Enters into New $500 Million Senior Unsecured Credit Facility

MILWAUKEE -- Oct. 13 --  Briggs and Stratton Corporation today announced the closing of a new five-year $500 Million Senior Unsecured Revolving Credit Facility with a syndicate of financial institutions.

The multicurrency credit agreement also includes an optional increase in aggregate commitment amount of up to $250 million, subject to certain conditions.

This agreement replaces the company's existing credit agreement maturing in July 2012. As of the end of the company's most recent fiscal year ended July 3, 2011, no amounts were outstanding under the existing agreement.

"We are pleased to have replaced this important source of unsecured, committed financing with such a strong showing of support from our existing and new financial institutions. It is a testament to our strong relationships as well as their confidence in the continued strength of and the outlook for our business," said David Rodgers, Briggs and Stratton Corporation Senior Vice president and Chief Financial Officer.

"Our capital structure, management, continued strong free cash flow generation and the new credit facility provide us with the financial flexibility to support continued organic growth in our core businesses and our strategy to diversify and grow geographically."

Fifteen financial institutions participated in the facility, which was more than 35 percent oversubscribed with J.P. Morgan Securities LLC and U.S. Bank N.A. serving as joint lead arrangers.

The company intends to use the Senior Unsecured Revolving Credit Facility to fund strategic growth initiatives, working capital and other general corporate purposes.

Material terms and conditions of the credit facility will be described in the company's filings with the Securities and Exchange Commission.