Spirit Aerosystems Holdings, Inc. Enters into Credit Agreement Amendment
November 15, 2021 at 04:32 pm EST
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On November?15, 2021, Spirit AeroSystems Holdings,?Inc. (the ?Company?), Spirit AeroSystems,?Inc., the Company?s direct wholly-owned subsidiary (?Spirit?), and Spirit AeroSystems North Carolina,?Inc., a wholly-owned subsidiary of the Company, entered into a first refinancing, incremental assumption and am1endment agreement (the ?November?2021 Amendment?) to the term loan credit agreement, among Spirit, the Company, as parent guarantor, the lenders party thereto, and Bank of America, N.A., as administrative agent and collateral agent (the ?Existing Credit Agreement? and, as amended by the November?2021 Amendment, the ?Credit Agreement?). The Company previously announced in a Current Report on Form?8-K, filed with the Securities and Exchange Commission on October?7, 2021that it had completed the syndication of the November?2021 Amendment on October?1, 2021. Pursuant to the Existing Credit Agreement, certain lenders provided a term loan B facility in an initial aggregate principal amount of $400,000,000. The November?2021 Amendment provides for, among other things, (i)?the refinancing of the $397,000,000 aggregate principal amount of term loans outstanding under the Existing Credit Agreement immediately prior to the effectiveness of the November?2021 Amendment (the ?Existing Term Loans?) with term loans in an equal principal amount with a lower interest rate (the ?Repriced Term Loans?) and (ii)?an incremental term loan facility of $203,000,000 in aggregate principal amount with the same terms as the Repriced Term Loans (the "Incremental Term Loans" and, together with the Repriced Term Loans, the ?Term Loans?). The proceeds of the Term Loans will be used to refinance the Existing Term Loans, to fund payments to the government of the United Kingdom and/or for general corporate purposes, including the repayment or redemption of debt.
?The Term Loans will mature on January?15, 2025. Following the effectiveness of the November?2021 Amendment, the Term Loans will bear interest at a rate, at Spirit?s option, ranging between LIBOR plus 3.50% and LIBOR plus 3.75% (or between base rate plus 2.50% and base rate plus 2.75%, as applicable) based on Spirit?s first lien secured gross leverage ratio.
Spirit AeroSystems Holdings, Inc. is a non-original equipment manufacturer (OEM) manufacturer of aerostructures, serving markets for commercial airplanes, military platforms and business/regional jets. The Company operates in three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment includes design and manufacturing of forward, mid, and rear fuselage sections and systems, struts/pylons, nacelles (including thrust reversers) and related engine structural components, wings, and wing components (including flight control surfaces), as well as other miscellaneous structural parts for large commercial aircraft and/or business/regional jets. The Company's Defense & Space segment includes design and manufacturing of fuselage, strut, nacelle, and wing aerostructures (primarily) for United States government defense programs. The Company's Aftermarket segment includes design, manufacturing, and marketing of spare parts and maintenance, repair, and overhaul services.