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Subsequent Events
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12 Months Ended |
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Mar. 31, 2013
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| Subsequent Events [Abstract] | |
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Subsequent Events
Amended and Restated Credit Agreement and Redemption of All Outstanding Senior Secured Notes
On April 19, 2013, Thermon Industries, Inc., a wholly-owned subsidiary of Thermon Group Holdings, Inc., entered into an amended and restated credit agreement, with certain lenders in the United States and Canada, whereby we borrowed $135 million under a new variable rate term loan and our existing revolving credit facility was increased from $40 million to $60 million. Both the variable rate term loan and the new revolving credit facility will mature in April 2018.
In connection with the amended and restated credit agreement, we delivered a notice of optional redemption to registered holders of our outstanding 9.5% senior secured notes due 2017. All of our outstanding senior secured notes were redeemed on May 20, 2013, with a redemption price equaling the aggregate principal amount of $118.1 million and a $15.5 million call premium. The variable rate term loan used to finance the redemption of the senior secured notes bears interest at the LIBOR rate plus an applicable margin dictated by the Company's leverage ratio. At the time of redemption on May 20, 2013, the interest rate was 2.75%.
The new revolving credit facility allows for up to $60 million to be borrowed by Thermon Industries and Thermon Canada Inc. to finance working capital needs and general corporate purposes. Outstanding borrowings incur interest at a variable rate which was 2.75% at the time of borrowing. There is also a 0.40% per annum fee for unused commitments, subject to change based on our leverage ratio.
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