CPI Aerostructures amends revolver’s interest rate, leverage covenant

By Angela McDaniels

Tacoma, Wash., May 5 – CPI Aerostructures, Inc. amended its revolving credit facility on Monday to change the interest rate and the maximum leverage ratio covenant, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is now Libor plus a margin that ranges from 200 basis points to 275 bps depending on the company’s leverage ratio. The commitment fee ranges from 20 bps to 30 bps.

Under the amendment, the company agreed to maintain a maximum leverage ratio of 2.75 times for the periods ended Dec. 31, 2013 through Dec. 31, 3.25 times for the period ended March 31, 3.75 times for the period ending June 30, 3.5 times for the period ending Sept. 30, 3 times for the period ending Dec. 31, 2015 and 2.75 times for the periods ending March 31, 2016 and thereafter.

The amendment is effective as of March 31.

Santander Bank, NA is the arranger, the agent, a lender and a swap provider. Valley National Bank is also a lender.

Edgewood, N.Y.-based CPI Aerostructures produces structural aircraft parts principally for the U.S. Air Force and other branches of the U.S. armed forces.

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