Comtech gets restated $200 million credit facility in two parts

By Wendy Van Sickle

Columbus, Ohio, Dec. 1 – Comtech Telecommunications Corp. amended and restated its credit agreement on Nov. 30 with Citibank, NA as administrative agent, providing for an up to $150 million senior secured revolving loan facility and a $50 million term loan A, according to an 8-K filing with the Securities and Exchange Commission.

The facility contains an accordion feature allowing the company to borrow up to an additional $100 million.

There is a $20 million letter-of-credit sublimit and a swingline loan credit sublimit of $15 million.

The maturity date is Oct. 31, 2024.

Borrowings bear interest at SOFR plus a margin ranging from 175 basis points to 375 bps, and the commitment fee ranges from 25 bps to 50 bps, in each case depending on the secured leverage ratio. At closing of the amendment, interest was SOFR plus 375 bps and the commitment fee was 50 bps.

Proceeds have been used in part to repay in full all outstanding borrowings under the company’s existing credit facility, and additional proceeds are expected to be used for working capital and other general corporate purposes.

Citibank, Manufacturers and Traders Trust. Co., BMO Harris Bank, NA and Santander Bank, NA are joint lead arrangers, with Citibank and Manufacturers and Traders as joint bookrunners. Manufacturers and Traders is also the syndication agent and documentation agent.

Comtech is a Melville, N.Y.-based designer, developer, producer and marketer of products, systems and services for advanced communications solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.