EMCOR Group Inc. (EME - Free Report) recently expanded its credit facility through a $1.1 billion credit agreement with a group of banks. This group includes BMO Capital Markets; Merrill Lynch, the investment banking division of Bank of America (BAC - Free Report) ; U.S. Bank National Association; JPMorgan Chase & Co. (JPM - Free Report) ; and The Royal Bank of Scotland Group plc’s (RBS - Free Report) Citizen’s Bank. The primary role of these banks will be to manage and control credit as joint lead arrangers and joint book runners.
Apart from a $750 million revolving credit, the new credit facility will also have an additional facility for $350 million term loan A. This credit facility is scheduled to mature in November 2018.
The advances from the term loan will be utilized to pay the company’s debt amassed from its acquisition of RepconStrickland, Inc. in July this year. EMCOR had drawn from its revolving credit facility to finance this acquisition. The loans will be secured by all the assets of the company as well as its subsidiaries. The revolving credit facility will continue to provide for the working capital requirements and other general corporate purposes.
This credit arrangement is in line with EMCOR’s long-term objectives that include having a strong balance sheet and sufficient liquidity along with an efficient management of finances to support the company’s growth.
EMCOR is a leading construction and manufacturing company specializing in electrical facilities, energy infrastructure and LEED (Leadership in Energy and Environmental Design) construction. The company also specializes in designing and manufacturing life saving facilities. The company’s core area of expertise includes planning and installing critical infrastructure systems by providing high quality commercial services that are aimed to extend the life of new and existing structures.
EMCOR currently has Zacks Rank #5 (Strong Sell).