Spirit Aerosystems, Inc. Completes the Syndication of A $600 Million Term Loan Facility Consisting of the Refinancing of the $397,000,000 Aggregate Principal Amount of Term Loans Outstanding Under the Term Loan Credit Agreement
October 07, 2021 at 04:31 pm EDT
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On October 1, 2021, Spirit AeroSystems, Inc. completed the syndication of a $600 million term loan facility (the “Term Loan Facility”) consisting of the refinancing of the $397,000,000 aggregate principal amount of term loans outstanding under 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 with term loans in an equal principal amount with a lower interest rate (the “Repriced Term Loans”) and an incremental term loan facility of around $200,000,000 in aggregate principal amount with the same terms as the Repriced Term Loans. The refinancing of the existing term loans and addition of the incremental term loan facility will be effected through an amendment to Spirit’s existing term loan credit facility. 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, with a LIBOR floor of 0.50%, and a maturity date of January 15, 2025. The closing of the Term Loan Facility is subject to execution of the definitive documentation and customary closing conditions. Execution of the definitive documentation for the Term Loan Facility, and closing of the refinancing and incremental term loan facility, is expected in November 2021. The proceeds of the Term Loan Facility 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.
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.
Spirit Aerosystems, Inc. Completes the Syndication of A $600 Million Term Loan Facility Consisting of the Refinancing of the $397,000,000 Aggregate Principal Amount of Term Loans Outstanding Under the Term Loan Credit Agreement