B/E Aerospace Announces Closing of New $750 Million Revolving Credit Facility
December 10 2010 - 6:00AM
Business Wire
B/E Aerospace, Inc. (Nasdaq: BEAV) (the “Company”), announced
today that it has prepaid the $343 million outstanding balance on
its existing bank term loan and that it has replaced both the
existing bank term loan and its existing revolving credit facility
with a new $750 million revolving credit facility.
The amended and restated credit agreement (the “2010 Credit
Agreement”) provides for a $750 million senior secured revolving
credit facility, which matures in December 2015. Borrowings under
the 2010 Credit Agreement will bear interest at LIBOR (currently
approximately 0.38 percent) plus 250 basis points. The 2010 Credit
Agreement provides the Company with an option, subject to the
satisfaction of certain conditions, to convert outstanding
borrowings into one or more new term loans, and to retain the
existing $750 million revolving credit facility.
On a pro forma basis, giving effect to the 2010 Credit
Agreement, the repayment of existing bank term loan borrowings and
the recent acquisitions of TSI Group, Inc. and Satair A/S aerospace
fastener distribution business as if they occurred on September 30,
2010, the Company’s cash balance would have been approximately $363
million, long-term debt would have been approximately $1.6 billion
(including approximately $359 million of revolving credit facility
borrowings initially drawn at closing of the 2010 Credit
Agreement), and the Company’s net debt-to-net capital ratio would
have been approximately 44 percent.
Amin J. Khoury, Chairman and Chief Executive Officer commented,
“The financing we announced today provides the Company with
significant financial flexibility, strengthens our liquidity, and
lowers our interest expense on bank borrowings.”
Mr. Khoury concluded, “The Company expects to report full year
2010 debt prepayment costs of approximately $0.08 per share,
including approximately $0.02 per share which was reported in the
second quarter of 2010.”
The Company entered into the 2010 Credit Agreement with JPMorgan
Chase Bank, N.A., as Administrative Agent, UBS Securities LLC and
Credit Suisse Securities (USA) LLC, as Syndication Agents, The
Royal Bank of Scotland plc, SunTrust Bank and Wells Fargo Bank,
N.A., as Documentation Agents, and various lenders named therein.
The Company will file a Current Report Form on 8-K with the
Securities and Exchange Commission regarding the 2010 Credit
Agreement.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements involve risks and uncertainties.
The Company’s actual experience and results may differ materially
from the experience and results anticipated in such statements.
Factors that might cause such a difference include those discussed
in the Company’s filings with the Securities and Exchange
Commission, which include the Registration Statement, prospectus,
and preliminary prospectus supplement related to this offering, its
Proxy Statement, Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. For more information,
see the section entitled "Forward-Looking Statements" contained in
the Company’s Annual Report on Form 10-K and in other filings. The
forward-looking statements included in this news release are made
only as of the date of this news release and, except as required by
federal securities laws, the Company does not intend to publicly
update or revise any forward-looking statements to reflect
subsequent events or circumstances.
About B/E Aerospace
B/E Aerospace is the world’s leading manufacturer of aircraft
cabin interior products and the world’s leading distributor of
aerospace fasteners and consumables. B/E Aerospace designs,
develops and manufactures a broad range of products for both
commercial aircraft and business jets. B/E Aerospace manufactured
products include aircraft cabin seating, lighting, oxygen, and food
and beverage preparation and storage equipment. The company also
provides cabin interior design, reconfiguration and
passenger-to-freighter conversion services. Products for the
existing aircraft fleet – the aftermarket – generate approximately
50 percent of sales. B/E Aerospace sells and supports its products
through its own global direct sales and product support
organization.
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