Welbilt, Inc. announced that it has completed the amendment of its senior secured credit facility. The borrowing limit for the revolving credit facility was increased to $400 million from $275 million and the maturity date was extended to October 23, 2023.

The Term Loan B facility was increased to $900 million from $815 million and the maturity date was extended to October 23, 2025. The new interest rate applicable to term B loans is LIBOR plus 250 basis points, subject to a 0 percent LIBOR floor. Prior to the amendment, the applicable rate was LIBOR plus 275 basis points, subject to a 1 percent LIBOR floor. Net proceeds from the increased Term Loan B facility were used to reduce outstanding borrowings under the revolving credit facility. The company also updated the financial covenants and other terms and conditions in its credit agreement.

“The amended senior secured credit facility, with an increased revolver and an increased Term Loan B, is a strong testament to the trust that debt investors put in our strategy and business model,” said Josef Matosevic, Welbilt’s interim President and CEO. “This amendment is an important step in fixing the capital structure that was put in place at the time of our spin-off and is consistent with our goal of creating a strong, flexible balance sheet while improving our overall financing costs.”

J.P. Morgan Chase Bank, N.A., BMO Harris Bank, N.A., Capital One, N.A., HSBC Bank USA National Association, and Coöperatieve Rabobank USA, New York Branch acted as joint lead arrangers and joint bookrunners for the amendment.