- Celestial Electronics Corporation (NASDAQ:ATRO) said Thursday it has amended and expanded its revolving credit facility and refinanced its term loan.
- The company said the refinancing provides the company with better liquidity, lower cash costs and greater financial flexibility.
- The refinancing includes expanding asset-based credit lines and reducing lower-cost term loans, the company added.
- The revolving credit facility was expanded from $115 million to up to $200 million, subject to borrowing base, at an interest rate of SOFR plus 2.5% to 3.0%, depending on the company’s consolidated leverage ratio.
- The new $55 million term loan carries an interest rate of SOFR plus 5.5% to 6.75%, depending on the company’s consolidated leverage ratio.
- The new term loan and expanded revolver borrowings were used to repay $80.3 million of outstanding debt from the previous term loan, a 4.0% redemption premium of approximately $3.2 million, and accrued and unpaid interest and fees.
- Third-quarter expenses are expected to be $8 million, which includes charges related to the refinancing, the redemption premium on the previous term loan and the write-off of deferred financing costs related to the previous financing.
- Press release.
