Lowers Costs and Increases Flexibility
LIBERTY LAKE, Wash.--(BUSINESS WIRE)--
Itron, Inc. (NASDAQ: ITRI), a leading solutions provider to the utility
industry, announced today that it has completed a refinancing of its
senior secured debt providing for committed credit facilities in the
amount of $800 million. The new credit agreement consists of a $300
million term loan and a multicurrency revolving credit facility with a
committed amount of $500 million.
Both the term loan and the revolver mature on August 5, 2016. Interest
on the term loan and revolver is based on the index rate and the
applicable margin, which is determined by the Company's leverage ratio,
as outlined in the pricing grid of the credit agreement included with
the Form 8-K filed today with the Securities and Exchange Commission. At
inception, the interest rate for the term loan and revolver is LIBOR
plus 1.50%.
The credit agreement provides more flexibility to the company. The
maximum leverage covenant is 4.0 times net debt divided by earnings
before interest and taxes (EBITDA), and the minimum interest coverage
covenant is 3.0 times EBITDA divided by annual interest expense. The
credit agreement has no capital expenditure covenant and permits
purchases of the company's stock and payment of dividends provided the
ratio of net debt to EBITDA is less than 2.75 times and certain other
conditions are met.
"I am very pleased with the low cost and flexibility provided by the new
agreement," said Steve Helmbrecht, senior vice president and CFO. "Our
cash flow performance and strategy to aggressively pay down debt over
the last couple of years created the opportunity to refinance our senior
debt, reduce costs, extend the maturity and support our future growth.
We appreciate the support and confidence of the syndicate of
relationship banks led by Wells Fargo and J.P. Morgan."
About Itron:
At Itron, we're dedicated to delivering end-to-end smart grid and smart
distribution solutions to electric, gas and water utilities around the
globe. Our company is the world's leading provider of smart metering,
data collection and utility software systems, with nearly 8,000
utilities worldwide relying on our technology to optimize the delivery
and use of energy and water. Our offerings include electricity, gas,
water and heat meters; network communication technology; collection
systems and related software applications; and professional services. To
realize your smarter energy and water future, start here: www.itron.com.
Itron, Inc.
Ranny Dwiggins
Vice President, Investor Relations
509-891-3443
ranny.dwiggins@itron.com
or
Marni
Pilcher
Director, Investor Relations
509-891-3847
marni.pilcher@itron.com
Source: Itron, Inc.
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