Ducommun announced it entered into a new $475 million credit agreement consisting of a $200 million revolving credit facility and a $275 million term loan facility to replace its existing debt structure.

Bank of America acted as administrative agent, swingline lender and L/C issuer. Wells Fargo Bank acted as syndication agent and GE Capital, BBVA Compass Bank and MUFG Union Bank acted as documentation agents for the new credit agreement. Bank of America Merrill Lynch, Wells Fargo Securities and GE Capital Markets also served as joint lead arrangers and joint book runners.

In connection with the transaction, the company has repaid an existing $80 million term loan and called $200 million of outstanding 9.75% senior unsecured notes due 2018.

The new credit agreement includes a significantly lower variable interest rate on borrowings than the debt it replaces and has a final maturity date of June 2020. The variable interest rate on the new credit agreement will initially be LIBOR plus 2.50%, subject to adjustments based on the company’s leverage ratio. The company estimates that the effective interest rate upon closing is approximately 3.50%.