Kadant Inc. announced that on December 14, 2018 it amended its existing credit agreement ("Credit Agreement") to increase its committed borrowing capacity under its revolving credit facility to $400 million, increase its uncommitted incremental borrowing facility to $150 million, and extend the maturity date under the Credit Agreement to December 14, 2023.

The Company separately entered into an uncommitted, unsecured note purchase and private shelf agreement ("Note Purchase Agreement") with Prudential Capital Group, the private capital arm of PGIM, Inc., the global investment management businesses of Prudential Financial, Inc., which allows the Company to, from time to time over the next three years, borrow up to $125 million with long-term fixed interest rates, as determined under the Note Purchase Agreement. Contemporaneously with the signing of the Note Purchase Agreement, the Company borrowed $10 million from the $125 million facility. The transactions provide Kadant with access to additional capital to support its growth strategies.

"As a result of these transactions, we now have even greater liquidity and flexibility to deploy capital opportunistically to further enhance our position in the marketplace," said Michael McKenney, executive vice president and chief financial officer of Kadant. "We look forward to continuing our relationships with our lenders as Kadant continues to grow."

Citizens Bank, N.A. acted as joint lead arranger and administrative agent; Wells Fargo Securities, LLC acted as joint lead arranger; Wells Fargo Bank, N.A. acted as syndication agent; and JPMorgan Chase Bank, N.A. acted as joint lead arranger and syndication agent on the Credit Agreement.

"At Citizens, we try to think about the needs of our clients from their point of view and offer holistic solutions," said Jerry Sargent, President of Citizens Bank, Massachusetts. "Providing flexible credit facilities so great clients such as Kadant can grow is just one of the ways that Citizens delivers substantial value for its clients at every stage of their business life cycle."

"Prudential Capital Group is excited to provide Kadant efficient access to long-term funding to support its growth," said Engin Okaya, Managing Director at Prudential Capital Group.