VSE extends credit agreement to 2025, lifts term loan to $100 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 11 – VSE Corp. extended and upsized its credit agreement, according to a news release and an 8-K filing with the Securities and Exchange Commission.

The term loan has been increased to $100 million from $49 million while the revolver remains $350 million.

The maturity date has been pushed out to Oct. 7, 2025 from July 23, 2024.

The quarterly amortization payments on the term loan were reduced to $2.5 million from $3.8 million.

The benchmark rate was switched to SOFR from Libor with a 0% SOFR floor. Also, the interest rate margins were reduced. Borrowings will now bear interest at term SOFR plus a margin ranging form 150 basis points to 375 bps, and the unused fee will range from 25 bps to 50 bps, both depending on the company’s total funded debt to EBITDA.

Meanwhile, the maximum leverage ratio was increased to 4.5x from 4.25x. The ratio will decrease to 3.5x by October 2024.

Citizens Bank, NA is the administrative agent of the credit agreement, which was first entered on Jan. 5, 2018.

VSE is a diversified logistics and services company based in Alexandria, Va.

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