listen to this articleThe Graham Company has entered into a new five-year, $50 million senior secured revolving credit facility with Wells Fargo Bank NA, of which $35 million is immediately available.
Company executives said the new credit facility will lower current borrowing rates and increase financial flexibility.
Graham plans to use the proceeds from the facility and cash on hand to repay the remaining $11.5 million of the term loan and $725,000 in termination fees from a previous loan modification.
The additional $15 million will be automatically available after the company achieves three consecutive 12-month adjusted EBITDA of $15 million and minimum liquidity of $7.5 million as defined in the credit agreement. Become.
“This new financing facility reflects the progress we are making as a company and gives us greater financial flexibility to execute on our growth strategy,” said Christopher Thome, Graham’s Chief Financial Officer. He will bring it.” “A revolver expands borrowing capacity while reducing borrowing costs. Importantly, the savings from refinancing allow him to repay his withdrawal fees in less than three years.”
Based in Batavia, Genesee County, Graham designs and manufactures mission-critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy and process industries.
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