Astronics rolls outstanding loans into $350 million restated revolver

By Marisa Wong

Madison, Wis., Sept. 26 – Astronics Corp. modified and extended its existing credit facility by entering into a fourth amended and restated credit agreement on Friday with HSBC Bank USA, NA as agent and HSBC, Bank of America, NA and Manufacturers and Traders Trust Co. as lenders, according to an 8-K filing with the Securities and Exchange Commission.

On the closing date, there were $180.5 million of term loans outstanding, $16 million of revolving loans outstanding and letters of credit with a face amount of $8.7 million outstanding under the original credit facility.

Under the new agreement, the original facility was replaced with a $350 million revolving credit line with an option to increase the line by up to $150 million.

The outstanding balances under the prior facility, excluding a $10 million payment, were rolled into the new agreement on the entry date.

In addition, the maturity date of the loans is now Sept. 26, 2019.

Interest is equal to one-, three- or six-month Libor plus 137.5 basis points to 225 bps, based on the company’s leverage ratio.

The company will also pay a commitment fee of between 17.5 bps and 35 bps on the undrawn portion of the credit facility, depending on the leverage ratio.

Covenants have been modified where the maximum permitted leverage ratio is 3.5 to 1, subject to an increase to 4 to 1 for up to two fiscal quarters following the closing of an acquisition permitted under the credit agreement.

In addition, the fixed-charge coverage ratio under the prior facility has been replaced with a minimum interest coverage ratio of 3 to 1.

Astronics is a supplier of products to the aerospace and defense industries and is based in East Aurora, N.Y.

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