RBC Bearings Incorporated Enters into Credit Agreement with Wells Fargo Bank, National Association
November 02, 2021 at 06:05 am EDT
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On November 1, 2021 RBC Bearings Incorporated and its subsidiary, Roller Bearing Company of America Inc. (RBCA"), entered into a Credit Agreement (the Credit Agreement") with WellsFargo Bank, National Association (Wells Fargo"), as Administrative Agent, Collateral Agent, Swingline Lender and Letter of Credit Issuer and the other lenders party thereto. The Credit Agreement provides RBCA, as Borrower, with (a) a $1,300,000,000 term loan facility (the Term Loan Facility") and (b) a $500,000,000 revolving credit facility (the Revolving Credit Facility" and together with the Term Loan Facility, the Facilities"). Amounts outstanding under the Facilities generally bear interest at either, at RBCA's option, (a) a base rate determined by reference to the higher of (i) Wells Fargo's prime lending rate, (ii) the federal funds effective rate plus 1/2 of 1.00% and (iii) the one-month LIBOR rate plus 1.00% or (b) the LIBOR rate plus a specified margin, depending on the type of borrowing being made. The applicable margin is based on the Company's consolidated ratio of total net debt to consolidated EBITDA from time to time. Currently, the Company's margin is 0.75% for base rate loans and 1.75% for LIBOR rate loans. The Facilities are subject to a LIBOR" floor of 0.00% and contain hard-wired" LIBOR replacement provisions as set forth in the Credit Agreement. The Term Loan Facility and the Revolving Credit Facility will mature on November 2, 2026 (the Maturity Date").
RBC Bearings Incorporated is a manufacturer and marketer of engineered precision bearings, components and essential systems for the industrial, defense and aerospace industries. The Company operates through two segments: Aerospace/Defense, and Industrial. The Company's products include plain bearings, roller bearings, ball bearings, mounted bearings, enclosed gearing, motion control components and engineered components. Its plain bearings are primarily used to rectify inevitable misalignments in various mechanical components, such as aircraft controls, helicopter rotors, or heavy mining and construction equipment. Its roller bearings are anti-friction products that utilize cylindrical rolling elements. Its roller bearings include tapered roller bearings, needle roller bearings and needle bearing track rollers and cam followers. Its engineered components consist primarily of engineered hydraulics and valves, fasteners, precision mechanical components and machine tool collets.
RBC BEARINGS INCORPORATED 
