DALLAS (AP) -- Flowserve Corp., which makes products for oil and gas operators, said Monday that it completed a $1.25 billion credit facility to add borrowing capacity.
The five-year facility includes a new $400 million term loan at a lower interest rate than a $500 million loan that was part of a credit facility due to expire in 2015.
It also includes an $850 million revolving-credit facility that could be increased to as much as $1.1 billion under some conditions. It has an initial rate a half-percentage point lower than the company's previous $500 million revolving account.
Flowserve had net debt of $622 million on June 30.
Chief Financial Officer Mike Taff said the new facility adds debt capacity for growth measures and reduces borrowing costs after the company got investment-grade marks from the three major ratings agencies.
Flowserve shares fell 67 cents to $127.91 in afternoon trading. They hit a 52-week high of $130.15 last week, up from the low of $66.84 last October.
