Spirit AeroSystems gets $1.15 billion five-year revolver, term loan at Libor plus 150 bps

By Susanna Moon

Chicago, June 10 – Spirit AeroSystems Holdings, Inc. subsidiary Spirit AeroSystems, Inc. obtained a $1.15 billion five-year senior credit facility consisting of a $650 million revolving facility and a $500 million term loan A.

Spirit entered into the credit agreement on Monday with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans is Libor plus 150 basis points, with the spread ranging from Libor plus 112.5 bps to Libor plus 200 bps, based on changes to Spirit’s senior debt ratings.

The facility matures on June 4, 2021.

The principal obligations under the term loan will be repaid in equal quarterly installments of $6.25 million, with the balance due at maturity of the term loan.

The credit agreement also contains an accordion feature that allows Spirit to increase the revolving commitments or institute one or more additional term loans by up to $500 million in the aggregate.

Proceeds of the new term loan, along with $1,562,500 of cash on hand, will be used to pay off the previous credit agreement.

Spirit AeroSystems designs and builds aerostructures for both commercial and defense customers. The company is based in Wichita, Kan.

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