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AirBoss gets $15 million of revolving loans for defense entities
By Sarah Lizee
Olympia, Wash., Jan. 2 – AirBoss of America Corp. amended its senior secured credit facilities to add U.S. and Canadian AirBoss Defense entities as borrowers under the credit facility, according to a press release.
The company said that its previously disclosed transaction to form AirBoss Defense Group through the merger of its AirBoss Defense business and other operations in Acton Vale, Quebec, with Critical Solutions International, Inc. closed on Jan. 1.
This revision will provide AirBoss Defense Group with to up to $15 million of revolving credit facilities, which are intended to provide the newly merged business with the access to capital necessary to achieve its objectives.
The syndicate of lenders will continue to consist of Toronto-Dominion Bank, National Bank of Canada, Comerica Bank and J.P. Morgan.
Aggregate availability under the credit facilities will be about $120 million, consisting of a $60 million term loan, a $60 million revolver and an accordion feature of up to an additional $50 million of availability.
The maturity date of the facilities is Jan. 2, 2023.
The revolver was undrawn at closing.
“Allowing ADG to access borrowing capacity under AirBoss’ senior secured credit facilities provides the new entity flexibility in the execution of its growth strategy plus an enhanced ability to manage through periods of variability inherent to the defense business,” Daniel Gagnon, chief financial officer of AirBoss, said in the release.
“By leveraging AirBoss’ solid balance sheet, ADG has access to capital at a more favourable rate than it could secure independently.”
Based in Newmarket, Ont., AirBoss operates a group of complementary businesses focusing on rubber compounding, products for the military, extruded and molded products and anti-vibration solutions for the North American automotive market.
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