Howmet Aerospace amends and restates $1 billion revolver

By Wendy Van Sickle

Columbus, Ohio, July 31 – Howmet Aerospace, Inc. entered into a second amended and restated $1 billion five-year revolving credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The revolver matures on July 27, 2028 and has two one-year extension options. The company may request to increase commitments by up to $500 million, and there is a $500 million sublimit for letters of credit.

Borrowings bear interest at term SOFR plus an adjustment of 10 basis points or Euribor, in each case plus a spread of 132.5 bps initially, and the initial commitment fee is 17.5 basis points. The margin may range from 89 bps to 195 bps, and the commitment fee from 11 bps to 30 bps, both depending on the company’s debt ratings.

Proceeds may be used for general corporate purposes.

Citibank, NA is the administrative agent and a lead arranger and bookrunner along with JPMorgan Chase, Bank, NA, BMO Capital Markets Corp., BNP Paribas, Fifth Third Bank, NA, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., Sumitomo Mitsui Banking Corp., TD Securities (USA) LLC and Truist Securities, Inc.

Howmet must maintain a consolidated net debt to consolidated EBITDA ratio as of the end of each fiscal quarter for the period of the four fiscal quarters most recently ended of at least 3.75x.

Pittsburgh-based Howmet is a global provider of advanced engineered solutions for the aerospace and transportation industries.

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