Checkpoint Systems announced that it has entered into a new revolving credit facility effective April 30, 2009.
The new revolving credit facility is a $125 million three-year senior secured multi-currency revolving credit facility with a syndicate of seven lenders co-led by Wachovia Bank, National Association and Citizens Bank of Pennsylvania.
Borrowings under the credit agreement bear interest rates of LIBOR plus an applicable margin ranging from 2.50 percent to 3.75 percent and/or prime rate plus 1.50 percent to 2.75 percent. The interest rate matrix is based on a leverage ratio of consolidated funded debt to EBITDA, as defined under the revolving credit agreement.
"We view our ability to renew our revolving credit facility in this tight credit market as a positive reflection on the financial strength of Checkpoint,” said Rob van der Merwe, Chairman, President and CEO of Checkpoint Systems.