Twin Disc Enters Interest Rate Swap Agreement with Bank of Montreal
April 26, 2019 at 04:15 pm EDT
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On April 22, 2019, Twin Disc, Incorporated entered into an interest rate swap agreement with Bank of Montreal pursuant to an International Swaps and Derivatives Association Inc. 2002 Master Agreement and Schedule thereto. The Company entered into the Swap to fix the interest rate associated with its $20,000,000 term loan with BMO Harris Bank, N.A. at approximately 2.49% plus an applicable margin of between 1.375% and 2.375% from April 30, 2019 through March 4, 2026. The Swap has an effective date of April 30 2019. Beginning May 31, 2019, the Company will be required to make monthly fixed rate payments to Bank of Montreal of 2.49% calculated on a notional amount of $20,000,000, and Bank of Montreal will be obligated to make monthly floating rate payments based on LIBOR to the Company referencing the same notional amount.
Twin Disc, Incorporated designs, manufactures and sells marine and heavy duty off highway power transmission equipment. The Company has two reportable segments: Manufacturing and Distribution. The Companyâs products offered include marine transmissions, azimuth drives, surface drives, propellers and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, controls systems and non-Twin Disc manufactured products. The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company has manufacturing locations in the United States, Belgium, Italy, Switzerland, and the Netherlands. In addition to these countries, it has distribution locations in Singapore, China, Australia, and Japan.
TWIN DISC, INCORPORATED 
