Regulatory News:
Hexcel Corporation (NYSE: HXL) (Paris:HXL) today announced the
successful consummation of a new $600 million senior secured revolving
credit facility that will mature in five years. The new facility
replaces the Company’s previous senior secured credit facility ($82.5
million term loan and a $360 million revolving loan) that would have
expired in July 2015.
The initial interest rate for the revolver is LIBOR + 1.50% through
September 30, 2013, and then can range up or down depending upon the
leverage ratio. The new initial interest rate is 50 basis points lower
than the prior facility, and at the current leverage ratio the new rate
would be LIBOR + 1.25% after September 30, 2013. Interest costs are
expected to decrease in the first year by nearly $2.5 million, with the
payback from the refinancing estimated to be under a year. In addition
to the lower interest rates and fees on undrawn balances, the new
facility provides greater flexibility. As a result of the refinancing,
Hexcel will accelerate certain unamortized financing costs of the credit
facility being replaced and the deferred expense on related interest
rate swaps incurring a pretax charge of $1.0 million (estimated after
tax of $0.01 per diluted share) in the second quarter of 2013.
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Hexcel Corporation is a leading advanced composites company. It
develops, manufactures and markets lightweight, high-performance
structural materials, including carbon fibers, reinforcements, prepregs,
honeycomb, matrix systems, adhesives and composite structures, used in
commercial aerospace, space and defense and industrial applications such
as wind turbine blades.
Copyright Business Wire 2013