Astronics Corporation announced it has amended and expanded its revolving line of credit and refinanced its term loan. The refinancing provides improved liquidity, lower cash costs, and greater financial flexibility for the Company. The refinancing is comprised of an expanded asset-based line of credit and a reduced, lower-cost term loan.

The revolving line of credit was expanded from $115 million to a $200 million maximum subject to the borrowing base, with an interest rate of SOFR plus 2.5% to 3.0% varying based on the Company?s consolidated leverage ratio. At closing, Astronics had $128 million drawn on the facility. HSBC Bank USA, N.A. was the agent for the lending group which included M&T Bank, KeyBank N.A., Webster Bank and BHI USA.

The new $55 million term loan has an interest rate of SOFR plus 5.5% to 6.75% varying based on the Company?s consolidated leverage ratio. Cash amortization of the new term loan will be approximately $550,000 annually, down from the previous rate of approximately $9.0 million. Funds for the term loan were provided by Redwood Capital Management, LLC through certain funds managed by the firm, along with HSBC Private Credit.

The restructured lending agreements also have less restrictive financial covenants, which include a minimum fixed charge coverage ratio of 1.1 to 1.0 and minimum liquidity of the greater of $15 million or 10% of the borrowing base. Both the expanded revolver and the new term loan mature on July 11, 2027. The new term loan and borrowings on the expanded revolver were used to repay the $80.3 million outstanding on the previous term loan, the 4.0% call premium of approximately $3.2 million and accrued and unpaid interest and fees.