Spirit AeroSystems replaces term loan B with $535 million term loan A

By Angela McDaniels

Tacoma, Wash., March 24 – Spirit AeroSystems Holdings, Inc. subsidiary Spirit AeroSystems, Inc. amended its credit agreement on March 18 to provide for a new $535 million senior secured term loan A due March 18, 2020, according to an 8-K filing with the Securities and Exchange Commission.

The term loan A replaces the term loan B due Sept. 15, 2020 with an amount outstanding of $534.9 million.

The term loan A initially bears interest at Libor plus 175 basis points. The margin over Libor ranges from 175 bps to 250 bps based on Spirit’s debt-to-EBITDA ratio.

The term loan A will be repaid in equal quarterly installments of $6.69 million.

The company said the credit agreement maintains substantially the same prepayment requirements and covenant structure and provides the company with some additional flexibility with respect to certain activities.

The company used the proceeds of the term loan A to pay off the term loan B.

Bank of America, NA is the administrative agent and collateral agent.

Spirit AeroSystems is a Wichita, Kan.-based maker of commercial and military airplane components, including fuselages, propulsion systems and wings.

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