Modine Manufacturing completes debt refinancing

RACINE, Wis.

Modine Manufacturing Co., which makes heaters and air conditioners, said it has completed refinancing its long-term debt.

"We believe these new facilities will provide Modine greater flexibility and ample liquidity to execute our current business plans, while at the same time significantly reducing our interest costs," Chief Financial Officer Michael B. Lucareli said in a statement.

The company said it completed a four-year, $145 million revolving credit facility with a group of six financial institutions led by JPMorgan Chase Bank NA. The new line also includes a $50 million expansion clause.

Modine also issued $125 million of 10-year, 6.83 percent senior notes to Prudential Capital Group. Modine said it used the proceeds to prepay outstanding notes due in 2015 and 2017.

In addition, the company made a $16.6 million interest payment to retire the former notes, which it expects will result in savings of $4.4 million in annual interest costs.

Shares of Modine rose 39 cents, or 3.4 percent, to $11.02 in afternoon trading.