THOR Industries has announced that it has successfully completed the repricing of its Senior Secured Term Loan B (the “Term Loan”). Both the USD and EUR tranches of the Term Loan were repriced.
The outstanding balance of $942 million on the USD Term Loan B tranche was repriced at par and the interest rate has been reduced to LIBOR +300 basis points from LIBOR +375 basis points and includes six months of 101 soft call protection. The LIBOR floor remains unchanged at 0.00 percent.
The outstanding balance of €503 million on the EUR Term Loan B tranche was repriced at par and the interest rate has been reduced to EURIBOR +300 basis points from EURIBOR +400 basis points and includes six months of 101 soft call protection. The EURIBOR floor remains unchanged at 0.00 percent.
The maturity date for the Term Loan remains Feb. 1, 2026, and no material changes were made to the covenants, including the financial covenants, or the other debt repayment terms.
Based on the interest rates currently in effect and a Term Loan balance outstanding of $1.54 billion, the repricing is expected to generate cash interest savings of approximately $13 million on an annualized basis.
“We are pleased to have completed this repricing, which further improves our capital structure and acknowledges the company’s operational and financial performance since the initial issuance of the Term Loan on Feb. 1, 2019,” said Colleen Zuhl, THOR’s senior vice president and CFO. “Since that time, our order backlog, net sales, and profitability have increased, and our credit profile has improved. Given the strength of our backlog, we have excellent revenue visibility for at least the next twelve months and a positive long-term outlook for the RV industry and our company.”
