AddThis

Scotts Miracle-Gro completes new $1.7 billion credit facility

Scotts Miracle-Gro, the industry’s largest supplier of lawn and garden products, has entered into a new $1.7 billion secured revolving credit facility, scheduled to mature in 2016. This replaces its existing $2.2 billion facility, which was set to expire in February 2012.

The Marysville, Ohio company said the transaction completes an overhaul of its capital structure which successfully staggered the maturities and sources of its borrowings. Over the past 18 months, Scotts Miracle-Gro has had two bond offerings of $200 million apiece which have maturities in 2020 and 2018 respectively.

"We are pleased to have now completed the process of replacing our previous credit facility on terms we believe are favorable and in a manner that reduces risk by diversifying both our sources of financing and maturity schedule," said Dave Evans, chief financial officer.  "The financing structure is aligned with our business strategy and capital structure strategy, giving us the ability to properly invest in our business while also continuing to return cash to shareholders." 

JP Morgan Chase Bank, as administrative agent, and Bank of America Merrill Lynch, as syndication agent, led a syndicate of 24 other lending banks.

 

© 2014 Home Channel News. All Rights Reserved.