Greenhill & Co. Inc. on Oct. 12 entered into a credit agreement with certain lenders and Goldman Sachs Bank USA as administrative agent, for a five-year term loan facility of $350 million and a three-year revolving credit facility of $20 million.
Borrowings under the term facility and the revolving credit facility bear interest at either a base rate plus 2.75%, or LIBOR plus 3.75%.
The proceeds from the term facility will be used to repay Greenhill's existing bank debt and related fees, costs and expenses. Remaining proceeds from the term facility will be used to fund Greenhill's tender offer for 12 million common shares at $17.25 per share, and additional repurchases of common stock after completion of the tender offer, including, in each case, related fees, costs and expenses.
In connection with entry into the credit agreement, Greenhill elected to repay in full all amounts outstanding and terminate its commitments under its 2006 loan agreement with First Republic Bank. Prior to repayment in full, the revolving credit facility had an outstanding balance of approximately $83.9 million.