GenCorp gets $200 million amended and restated credit facility

By Sara Rosenberg

New York, Nov. 21 - GenCorp Inc. closed on a $200 million amended and restated credit facility due Nov. 18, 2016, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc. and U.S. Bank acted as the joint lead arrangers and bookrunners on the deal that was completed on Nov. 18, with Wells Fargo the administrative agent.

The facility consists of a $150 million revolver and a $50 million term loan and is priced at Libor plus 350 basis points. The spread can step down to Libor plus 325 bps if leverage is greater than or equal to 1.50 to 1.00 but less than 2.50 to 1.00, and to Libor plus 300 bps if leverage is less than 1.50 to 1.00.

The revolver has a 50 bps unused fee.

Amortization on the term loan is 5% quarterly, with the balance due at maturity.

Financial covenants include a maximum total leverage ratio of 3.50 to 1.00, subject to upward adjustment in certain cases, and a minimum interest coverage ratio of 2.40 to 1.00.

Security is a substantial portion of the company's tangible and intangible personal property and other assets, including the stock and assets of its material domestic subsidiaries that are guarantors of the facility.

Proceeds were used to replace an existing credit facility.

GenCorp is a Rancho Cordova, Calif., technology-based manufacturer of aerospace and defense products and systems with a real estate segment.

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