Triumph Amends Credit Agreement - Analyst Blog
May 24 2012 - 4:45AM
Zacks
Triumph Group Inc.
(TGI) announced amendment to its
existing revolving credit agreement. The amendment increased the
size of the revolving credit while extending the maturity period to
five years with a modified fee structure.
The increase in size of the
company’s secured revolving credit facility from $850 million to $1
billion along with a $50 million accordion feature was quite
significant. Moreover, the maturity term for the facility was
extended through May 23, 2017.
Triumph’s Chairman and Chief
Executive Officer, Richard C. Ill, was pleased with the favorable
pricing grid, which resulted from the amendment. He opined that the
new agreement will create immediate savings and help in easy
execution of business with increased credit size and extended
term.
With support from the bank group
and the company’s lead bank, PNC, for the longer term, Triumph will
now be able to invest more into its ongoing business for internal
growth initiatives and pursue future acquisitions as well.
Recently, the company posted
fourth-quarter 2011 results with net sales increasing 3% year over
year to $946.4 million and organic growth reaching 3% as well.
EBITDA jumped 27.1% year over year to $165.3 million in the
reported quarter while EBIDTA margin rose to 17.5% from 14.2% a
year ago. Moreover, strong backlog during the quarter coupled with
a solid balance sheet was quite impressive.
Based in Wayne, Pennsylvania,
Triumph Group offers a variety of products and services to the
aerospace industry, serving commercial and regional airlines, air
cargo carriers, as well as OEMs of commercial, regional, business
and military aircrafts. It faces stiff competition from its peers,
such as AAR Corp.
(AIR) and
Goodrich Corp.
(GR).
We currently maintain a long-term
‘Neutral’ recommendation on the stock. Moreover, Triumph Group has
a Zacks #2 Rank, which translates into a short-term (1-3 months)
‘Buy’ rating.
AAR CORP (AIR): Free Stock Analysis Report
GOODRICH CORP (GR): Free Stock Analysis Report
TRIUMPH GRP INC (TGI): Free Stock Analysis Report
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