Hawker Beechcraft gets $120 million term loan, defers payments

By Sara Rosenberg

New York, March 28 - Hawker Beechcraft Inc. has reached an agreement to get a new $120 million incremental term loan and postpone interest payments on its existing credit facility borrowings, according to a news release.

Specifically, lenders currently holding about 70% of the company's bank debt have agreed to defer certain interest payments on the revolver and term loans and have granted relief from existing loan covenants.

The new forbearance agreement will expire on June 29.

Meanwhile, proceeds from the incremental loan will be used to fund ongoing operations as the company continues working with lenders toward a comprehensive recapitalization.

"We believe this agreement will stabilize the company's current financial position and ensure Hawker Beechcraft continues manufacturing the best airplanes for our customers and providing first-class service and support," said Robert S. Miller, chief executive officer, in the release.

"At the same time, the agreement provides Hawker Beechcraft and its lenders with additional time and flexibility to work together to recapitalize the company and better position Hawker Beechcraft for the future," Miller added.

Hawker Beechcraft is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft.

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