Astronics cuts revolving credit line to $225 million, extends maturity

By Marisa Wong

Los Angeles, March 2 – Astronics Corp. amended its existing credit facility on March 1 to reduce the maximum amount that the company can borrow under the revolving credit line to $225 million from $375 million and extend the maturity date to May 30, 2023 from Feb. 16, 2023, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also removes the company’s prior option to increase the amount of the revolving credit line.

Under the amendment, the company’s maximum net leverage ratio must not exceed 4.75 to 1 as of the quarter ending March 31; 4.75 to 1 as of the quarter ending June 30; and 3.75 to 1 for all quarterly periods ending after that through the maturity date.

The amendment also requires the company to maintain minimum liquidity, defined as unrestricted cash plus the unused revolving credit commitments, of $35 million tested as of the last day of each month.

The company will pay interest on the unpaid principal amount of the amended facility at a rate equal to one-, three- or six-month SOFR, subject to a 1% SOFR floor, plus an applicable margin ranging between 150 basis point and 325 bps based upon the company’s leverage ratio.

The company will also pay a commitment fee on the undrawn portion of the facility in an amount equal to 10 bps to 40 bps, based on the company’s leverage ratio.

The amendment provided for the payment of a consent fee of 10 bps for each consenting lender.

In addition, the company granted a first-priority lien mortgage on all of its real estate in favor of the lenders.

The amendment also temporarily restricts certain activities, including acquisitions, dividend payments and share repurchases, through at least Sept. 30, 2022. The company’s ability to begin reengaging in those activities after that date is subject to compliance with the required maximum net leverage ratio.

Astronics’ fifth amended and restated credit agreement is dated Feb. 16, 2018 with HSBC Bank USA, NA as agent.

Astronics is an aerospace electronics company based in East Aurora, N.Y.

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