Generac Holdings Inc. (GNRC)’s $1.15 billion term loan supporting a dividend and refinancing is being led by JPMorgan Chase & Co., which will host a lender meeting tomorrow, according to a person with knowledge of the transaction who asked not to be identified because the information is private.
The generator maker is paying a dividend of as much #$%$ a share, the company said today in a regulatory filing. The new financing will include a $150 million asset-based revolving credit line that will be undrawn at closing, Generac said.
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Generac, based in Waukesha, Wisconsin, will incur about $335 million in debt from the payout, according to the filing. It has about $801 million outstanding under a term loan due in May 2018, according to data compiled by Bloomberg. The debt, obtained last year, began paying interest at 5 percentage points more than the London interbank offered rate with a 1.25 percent minimum on the lending benchmark, the data show. This dividend works out to be 13% at todays current PPS of $38