LMI Aerospace closes on $90 million revolver, repays existing facility

By Marisa Wong

Madison, Wis., June 20 – LMI Aerospace, Inc. entered into a credit agreement on June 19 that provides for a new $90 million senior secured revolving credit facility, subject to a borrowing base calculated based on eligible receivables, eligible inventory, eligible machinery and equipment, according to an 8-K filing with the Securities and Exchange Commission.

RBC Capital Markets, Wells Fargo Bank, NA and SunTrust Robinson Humphrey, Inc. are the joint lead arrangers and bookrunners. Royal Bank of Canada is the administrative agent and co-collateral agent, and Wells Fargo is the syndication agent and co-collateral agent.

The new revolver includes a sublimit for one or more swingline loans and letters of credit.

The revolver will mature on the date that is 91 days prior to the July 15, 2019 maturity of the company’s newly issued 7 3/8% second-priority senior secured notes unless the notes are repaid or refinanced, in which case the maturity date will be June 19, 2019.

At closing, the company drew down about $11.5 million under the revolver.

Borrowings bear interest at Libor plus 300 basis points to 350 bps, depending on average excess availability.

The company must also pay an unused commitment fee equal to 50 bps if excess availability is greater than 50% of the aggregate revolver commitments or 37.5 bps if the excess availability is less than 50% of the aggregate revolver commitments.

The credit agreement requires compliance with a financial covenant related to a first-priority leverage ratio and also requires compliance with a minimum availability threshold.

The company used proceeds from its new 7 3/8% notes and the new credit agreement to repay its credit facility dated Dec. 28, 2012, which was terminated upon closing of the notes offering and the new revolver. The old facility consisted of a $125 million revolver and $225 million term loan B scheduled to mature in December 2017 and December 2018, respectively.

LMI Aerospace is a St. Charles, Mo.-based supplier of components and provider of engineering services to the aerospace and defense industries.

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