Howmet Aerospace Inc. Announces Amended and Restated its Five-Year Revolving Credit Agreement
September 28, 2021 at 04:33 pm EDT
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On September 28, 2021, Howmet Aerospace Inc. announced the amended and restated its Five-Year Revolving Credit Agreement (the “Amendment and Restatement”), dated as of July 25, 2014 (as amended and extended by the letter agreement, dated as of June 5, 2015, and as further amended pursuant to Amendment No. 1, dated as of September 16, 2016, Amendment No. 2, dated as of June 29, 2018, Amendment No. 3, dated as of March 4, 2020, Amendment No. 4, dated as of June 26, 2020 and Amendment No. 5, dated as of March 29, 2021, the “Existing Credit Agreement” and the Existing Credit Agreement, as amended by the Amendment and Restatement, the “Credit Agreement”), by and among the Company, a syndicate of lenders and issuers named therein, Citibank, N.A., as administrative agent for the lenders and issuers, and JPMorgan Chase Bank, N.A., as syndication agent. Among other changes, the Amendment and Restatement extends the maturity date to September 28, 2026; increases the dollar baskets for Restricted Payments (as defined in the Credit Agreement) during the Covenant Relief Period (as defined in the Credit Agreement) to $450 million (from $250 million) during the fiscal year ending December 31, 2021 and to $500 million (from $400 million) during the fiscal year ending December 31, 2022 plus any amount that remains unused as of December 31, 2021; reduces certain fees payable in connection with the credit facility; and adds an additional credit rating agency to the Index Debt Ratings (as defined in the Credit Agreement) pursuant to which the interest rate is determined. In addition, it makes certain changes to the Existing Credit Agreement in connection with the cessation of LIBOR.
Howmet Aerospace Inc. is a provider of advanced engineered solutions for the aerospace and transportation industries. The Companyâs segments include Engine Products, Fastening Systems, Engineered Structures and Forged Wheels. The Engine Products segment utilizes advanced designs and techniques to support engine programs and produces components for aircraft engines and industrial gas turbines. The Fastening Systems segment produces aerospace and industrial fastening systems, as well as commercial transportation fasteners and installation tools. The Engineered Structures segment produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, extrusions, forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment manufactures forged aluminum wheels for trucks, buses, and trailers and related products for the global commercial transportation market.