Federal Signal Corporation Announces New Senior Secured Credit Facilities
OAK BROOK, Ill., March 14, 2013
OAK BROOK, Ill., March 14, 2013 /PRNewswire/ --Federal Signal Corporation
(NYSE: FSS), a leader in environmental and safety solutions, today announced
that it has successfully completed the refinancing of its existing senior
secured credit facilities with new senior secured credit facilities (the
"Senior Secured Pro Rata Agreement"), consisting of a five-year, $150 million
revolving credit facility and a five-year, $75 million fully funded term loan
"I am delighted with the result of our debt refinancing efforts and the much
improved capital structure of Federal Signal," said Dennis Martin, Federal
Signal's president and chief executive officer. "We received strong demand in
the bank market allowing us to take advantage of very favorable rates. This
transaction strengthens our balance sheet and affords us the flexibility
needed to achieve our goals in growing the Company. We have a very strong
bank group that will benefit Federal Signal for years to come."
Wells Fargo Bank, N.A. is the administrative agent for the Senior Secured Pro
Rata Agreement and GE Capital, Corporate Finance is the syndication agent.
Wells Fargo Securities, LLC and GE Capital Markets, Inc. are joint lead
arrangers and joint book managers.
The opening interest rate for both the $75 million fully funded senior secured
term loan A and the $150 million senior secured revolving credit facility is
LIBOR plus a margin of 2.75%. The Company estimates it will save more than
$10 million of interest expense per annum. The Company also estimates it will
record an $8.7 million charge in the first quarter of 2013 related to the
termination of its prior debt agreements. The charge includes a non-cash
write-off of deferred financing costs of $4.6 million and a cash prepayment
premium of $4.1 million. The Senior Secured Pro Rata Agreement is subject to
affirmative, negative and financial covenants and other customary conditions.
About Federal Signal
Federal Signal Corporation (NYSE: FSS) enhances the safety, security and
well-being of communities and workplaces around the world. Founded in 1901,
Federal Signal is a leading global designer and manufacturer of products and
total solutions that serve municipal, governmental, industrial and commercial
customers. Headquartered in Oak Brook, Ill., with manufacturing facilities
worldwide, the Company operates three groups: Safety and Security Systems,
Environmental Solutions and Fire Rescue. For more information on Federal
Signal, visit: http://www.federalsignal.com.
SOURCE Federal Signal Corporation
Contact: Braden Waverley +1-630-954-2000, email@example.com
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