Huntington Ingalls eyes $1.25 billion replacement revolver by year-end

By Marisa Wong

Morgantown, W.Va., Nov. 16 – Huntington Ingalls Industries, Inc. said it is in discussions with prospective lenders for a new $1.25 billion unsecured revolving credit facility that would replace its existing $1.25 billion secured revolving credit facility.

The loans under the new facility would mature in 2022, according to an 8-K filing with the Securities and Exchange Commission.

The company said the new credit agreement would eliminate some of the covenants contained in the existing agreement and also include some covenants in a form different from the corresponding ones in the existing agreement.

In addition, the financial covenant in the new credit agreement would be a maximum total leverage test rather than a maximum net leverage test.

The company said it expects to close the new credit facility by year-end.

Based in Newport News, Va., Huntington Ingalls Industries designs, builds and manages the life-cycle of nuclear and conventionally powered ships for the U.S. Navy and the U.S. Coast Guard.

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