Hexcel replaces old revolver, term loan with $600 million revolver

By Angela McDaniels

Tacoma, Wash., June 27 - Hexcel Corp. entered into a new $600 million five-year senior secured revolving credit facility, according to a company news release.

The new revolver replaces the company's previous senior secured credit facility - an $82.5 million term loan and a $360 million revolving loan - that would have expired in July 2015.

The initial interest rate for the revolver is Libor plus 150 basis points until Sept. 30. At the current leverage ratio, the new rate would be Libor plus 125 bps after Sept. 30.

The company said that the new initial interest rate is 50 bps lower than the prior facility and that interest costs are expected to decrease in the first year by nearly $2.5 million.

In addition to the lower interest rates and fees on undrawn balances, the new facility provides greater flexibility, according to the news release.

Hexcel is a composites company based in Stamford, Conn.

© 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.