Ferguson Enterprises has entered into two material credit agreements totaling $1.6 billion to finance its previously announced acquisition of FWI Holdings, Inc. ("FloWorks"). The financing, arranged with JPMorgan Chase Bank, N.A. as the administrative agent, consists of a $700 million bridge credit facility and a $900 million term loan facility. Funding under both agreements is contingent upon the concurrent closing of the FloWorks acquisition.
Key Details
- Term Loan Facility: The company secured a $900 million unsecured term loan with a maturity of three years from the funding date.
- Bridge Facility: A $700 million unsecured bridge term loan was also established with a 364-day maturity. This facility serves as backup financing in the event the company does not complete other capital markets transactions prior to the acquisition closing.
- Purpose & Terms: Proceeds are designated for the FloWorks acquisition and related expenses. Both loans bear interest at either the Base Rate or Term SOFR plus a margin tied to the company's credit rating. The agreements include a maximum net leverage ratio covenant of 3.50 to 1.00, with a temporary step-up to 4.00 to 1.00 following certain material acquisitions.