Graham Corporation Refinances Debt with New, Lower Cost $50 Million Revolving Credit Facility
October 16 2023 - 8:30AM
Business Wire
Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a
global leader in the design and manufacture of mission critical
fluid, power, heat transfer and vacuum technologies for the
defense, space, energy, and process industries, today announced
that it has successfully closed on a new, five-year $50 million
senior secured revolving credit facility with Wells Fargo Bank N.A.
of which $35 million is immediately available. The Company will use
the proceeds from the facility and cash on hand to pay down the
remaining $11.5 million balance of its term loan and the $725,000
exit fee from its previous lending agreement amendments. The new
facility will reduce current borrowing rates by approximately 25
basis points to SOFR plus 1.25%.
The additional $15 million of the facility automatically becomes
available after the Company achieves three consecutive quarters of
trailing twelve month adjusted EBITDA of $15 million and minimum
liquidity of $7.5 million as defined in the credit agreement.
Christopher Thome, Chief Financial Officer, commented, “This new
credit facility reflects the progress we are making as a Company
and provides us greater financial flexibility to execute on our
strategy for growth. The revolver expands our borrowing capacity
while reducing our cost of borrowing. Importantly, the savings from
the refinancing will provide for a less than three-year payback of
the exit fee.”
About Graham Corporation
GHM is a global leader in the design and manufacture of mission
critical fluid, power, heat transfer and vacuum technologies for
the defense, space, energy, and process industries. The Graham
Manufacturing and Barber-Nichols’ global brands are built upon
world-renowned engineering expertise in vacuum and heat transfer,
cryogenic pumps, and turbomachinery technologies, as well as its
responsive and flexible service and the unsurpassed quality
customers have come to expect from the Company’s products and
systems.
Graham Corporation routinely posts news and other important
information on its website, grahamcorp.com, where additional
information on Graham Corporation and its businesses can be
found.
Safe Harbor Regarding Forward Looking Statements
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.
Forward-looking statements are subject to risks, uncertainties
and assumptions and are identified by words such as “expects,”
“anticipates,” “should,” ”may”, “will,” “plan” and other similar
words. All statements addressing operating performance, events, or
developments that Graham Corporation expects or anticipates will
occur in the future, including but not limited to, its use of the
proceeds from and future savings related to the new facility, and
its cash usages, are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important
risk factors and uncertainties. These risk factors and
uncertainties are more fully described in Graham Corporation’s most
recent Annual Report filed with the Securities and Exchange
Commission (the “SEC”), included under the heading entitled “Risk
Factors”, and in other reports filed with the SEC.
Should one or more of these risks or uncertainties materialize
or should any of Graham Corporation’s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on
Graham Corporation’s forward-looking statements. Except as required
by law, Graham Corporation disclaims any obligation to update or
publicly announce any revisions to any of the forward-looking
statements contained in this news release.
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version on businesswire.com: https://www.businesswire.com/news/home/20231016780125/en/
Christopher J. Thome Vice President - Finance and CFO Phone:
(585) 343-2216
Deborah K. Pawlowski Kei Advisors LLC Phone: (716) 843-3908
dpawlowski@keiadvisors.com
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