Astronics cuts revolving credit line to $190 million, extends maturity

By Mary-Katherine Stinson

Lexington, Ky., Aug. 10 – Astronics Corp. amended its existing credit facility on Aug. 9 to again reduce the maximum amount that the company can borrow under the revolving credit line to $190 million from $225 million and to further extend the maturity date by approximately three months to Aug. 21, 2023 from May 30, 2023, according to an 8-K filing with the Securities and Exchange Commission.

Further reductions to the credit line are scheduled, cutting the maximum borrowing amount to $180 million at Sept. 12 and $170 million at Oct. 11.

Under the amendment, the company’s maximum net leverage ratio must not exceed 4.25x as of the quarter ending Sept. 30 and 3.75x for all quarterly periods ending after that through the maturity date.

The company will pay interest on the unpaid principal amount of the amended facility at a rate equal to SOFR, subject to a 1% SOFR floor, plus an applicable margin ranging between 150 basis points and 475 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 basis points, again based on the company’s leverage ratio.

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

The fifth amended and restated credit agreement modifies the Feb. 16, 2018 credit facility with HSBC Bank USA, NA as agent.

In addition to HSBC, Bank of America, NA, M&T Trust Co., Truist Bank and Wells Fargo Bank, NA are lenders.

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

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