ALEXANDRIA, Va.–(BUSINESS WIRE)–VSE Corporation (NASDAQ: VSEC), a leading provider of aftermarket distribution and maintenance, repair and overhaul services for land, sea and air transportation assets for government and commercial markets, today announced that it has successfully amended, extended and upsized the Company’s existing credit facility with its lending syndicate.
“Our amended credit facility serves to lower borrowing costs, increase availability under our term loan, and extend the maturity date; the combination of which further positions us to continue to execute on our transformation and growth strategy,” said Stephen Griffin, Chief Financial Officer of VSE Corporation. “We want to thank our lending syndicate for their continued partnership and confidence in the strategic direction of our business.”
The amendment provides for the following:
- Increases total term loan borrowing capacity from $49 million to $100 million and maintains revolving credit facility capacity of $350 million;
- Extends the maturity date of the term loan and revolving credit facility from July 2024 to October 2025;
- Modifies required quarterly amortization payments on the term loan from $3.8 million to $2.5 million;
- Transitions the benchmark rate from LIBOR to SOFR with a SOFR floor of 0.00%;
- Revises the maximum total leverage ratio from 4.25x to 4.50x, with such ratio decreasing to 3.50x by October 2024; and
- Provides a reduction in interest rate margins, with such margins and fees stepping down in accordance with revised leverage ratios.
ABOUT VSE CORPORATION
VSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets. Core services include MRO services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services for global commercial, federal, military and defense customers. VSE also provides information technology and energy consulting services. For additional information regarding VSE’s products and services, visit www.vsecorp.com.
