Helios Technologies entered into an amendment and restatement of its existing term loans and revolving credit facility to extend debt maturities, strengthen and streamline its lender group, reduce borrowing spreads, and expand the borrowing capacity under both its revolving credit facility and accordion feature. PNC Bank served as administrative agent for the new credit agreement.

“The amended credit agreement supports our efforts to optimize our capital structure while providing the financial flexibility to execute on our strategic priorities,” said Josef Matosevic, President and Chief Executive Officer of Helios. “We remain committed to vigilantly managing the Company’s financial resources for the long-term by upsizing our credit facility and reducing the borrowing spreads for credit advances.”

The amended credit agreement extends debt maturity for five years to June 25, 2029, upsizes the Company’s revolving credit facility from $400 million to $500 million, and establishes a new $300 million term loan that refinances and replaces the previous term loan. The accordion feature is increased by $100 million, to $400 million. The amended credit agreement also reduces borrowing spreads by a range of 25 basis points bps to 50 bps compared to the previous credit agreement, dependent upon the Company’s net leverage ratio. In addition, the LIBOR to SOFR transitionary credit spread adjustment of 10 bps has been eliminated.

“An efficient debt structure is an integral element that supports our disciplined capital deployment, which in turn will drive long-term value creation for our shareholders. We sincerely appreciate the support of our banking partners in this endeavor,” said Sean Bagan, Chief Financial Officer of Helios.