Altra Industrial Motion Corp. (NASDAQ:AIMC) (“Altra” or the “Company”), a leading global manufacturer and supplier of motion control, power transmission and automation products, today announced that the Company has entered into a new five-year credit agreement among the Company and the lenders party to the credit agreement from time to time, which consists of a new $400 million term loan and a new $1 billion revolving credit facility. The Company will use the proceeds to repay in full all amounts outstanding on its existing term loan and revolving credit facilities, which have been terminated, and for general corporate purposes, including acquisitions.
“We are very pleased with the results of this refinancing,” said Carl Christenson, Altra’s Chairman and Chief Executive Officer. “Based on the current interest rate environment, we expect this transaction will have the potential to provide us with a reduction in our annual interest expense of approximately $4-$5 million. Moreover, this transaction furthers our efforts to strengthen our balance sheet and provides us with the flexibility and capacity to pursue our long-term organic and acquisition growth strategies.”
