Welbilt Completes Senior Secured Revolving Credit Facility Amendment

Welbilt, Inc. (NYSE:WBT) announced today that it has amended its $400 million senior secured revolving credit facility (“Revolver”) to address the risk of non-compliance with the Revolver’s financial covenants due to the COVID-19 pandemic’s impact on the commercial foodservice industry and the resulting demand for our products.

The Leverage Ratio and Interest Coverage financial covenants are suspended for four quarters beginning with the quarter ending June 30, 2020 and replaced during that period with Minimum Consolidated EBITDA, Minimum Liquidity and Maximum Capital Expenditures tests, with the Minimum Liquidity test extending one additional quarter.

The Leverage Ratio and Interest Coverage tests will be reinstated in the second quarter of 2021 at modified levels as compared to the pre-amendment requirements, returning to the pre-amendment covenant levels by the fourth quarter of 2021.

The size ($400 million) and maturity (October 2023) were unchanged.

“We are pleased to have completed the Revolver amendment early in the second quarter,” stated Marty Agard, Welbilt’s Executive Vice President and Chief Financial Officer. “Welbilt was on a journey to reduce its debt-to-EBITDA ratio to between 3.25x and 3.75x by the end of 2021, which has been negatively impacted by the COVID-19 pandemic. This amendment provides substantial covenant headroom over seven quarters, which will help to ensure continued access to our Revolver throughout this crisis and recovery period. We continue to believe that our liquidity resources including this Revolver are sufficient to meet our working capital needs and cash requirements and, as such, we did not seek additional Revolver capacity in this amendment. We remain committed to continuing our deleveraging journey once this crisis abates and business conditions begin to normalize.”

About Welbilt, Inc.

Welbilt, Inc. provides the world’s top chefs, premier chain operators and growing independents with industry-leading equipment and solutions. Our innovative products and solutions are powered by our deep knowledge, operator insights, and culinary expertise. Our portfolio of award-winning product brands includes Cleveland™, Convotherm®, Crem®, Delfield®, Frymaster®, Garland®, Kolpak®, Lincoln™, Manitowoc® Ice, Merco®, Merrychef® and Multiplex®. These product brands are supported by two service brands: FitKitchen®, our fully-integrated kitchen systems brand, and KitchenCare®, our aftermarket parts and service brand. Headquartered in the Tampa Bay region of Florida and operating 20 manufacturing facilities throughout the Americas, Europe and Asia, we sell through a global network of over 5,000 distributors and dealers in over 100 countries. We have approximately 4,800 employees and generated sales of $1.6 billion in 2019. For more information, visit www.welbilt.com.

Contacts

Rich Sheffer
Vice President Investor Relations, Risk Management and Treasurer
Welbilt, Inc.
+1 (727) 853-3079
Richard.sheffer@welbilt.com