US-based space technology manufacturer GenCorp has secured a new US$100m subordinated delayed draw term loan.
Proceeds from the facility are to be used to refinance existing debt and repurchase common stock as well as for general corporate…
US-based space technology manufacturer GenCorp has secured a new US$100m subordinated delayed draw term loan.
Proceeds from the facility are to be used to refinance existing debt and repurchase common stock as well as for general corporate purposes.
The loan pays 8.5% over Libor and is understood to mature in April 2022. The debt, though, may be voluntarily prepaid at any time, in whole or in part, without premium or penalty.
Two US hedge funds provided the financing, Beach Point Capital Management and Apollo Investment Corporation. The Bank of New York Mellon acted as administrative agent on the transaction.
Prior to this financing, GenCorp had US$694.1m of total debt, split between US44.4m of senior bank debt, US$188.9m of convertible subordinated notes and US$460m of senior second-lien 8-year notes that it raised in January 2013 to fund its purchase of rocket systems developer Pratt & Whitney Rocketdyne.
The company also has a US$150m revolving credit facility of which US$91.9m remains available.
In late March, GenCorp reported its first quarter 2014 results, recording a 35% year-on-year increase in net sales to US$329.7m. Adjusted EBITDA was also up, from US$29.8m in Q1 2013 to US$40.9m, however the company still recorded a net loss of US$2.1m for the quarter.
At the start of the year, Gencorp announced a cost reduction plan that will result in approximately 260 employees being laid off.
A month later it then revealed that the board of directors had approved a US$55m share buyback plan.
