CPI Aerostructures entered into a $40 million amended and restated credit agreement that replaces its previous $35 million credit facility. BankUnited and Citizens Bank are lenders under the facility.
The facility consists of a $10 million term loan and up to $30 million of revolving credit that is secured by a lien on substantially all assets of the company and may be used for working capital needs, capital expenditures and general business purposes. The interest rate at closing on the facility is subject to a leverage-based pricing grid. The other terms of the facility are substantially similar to those of the company’s prior facility. The facility has a three-year term and matures in March 2019.
“The financing recapitalizes and strengthens CPI Aero’s balance sheet and provides us additional liquidity and flexibility to support our investment and growth initiatives,” said Vincent Palazzolo, chief financial officer of CPI Aero. “BankUnited and Citizens understand our industry, our business model and our vision for the company, and we appreciate the confidence that they have in us to execute our plan and look forward to having them be an integral part of our future success.”
Edgewood, NY-based CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance (ISR) pod systems in both the commercial aerospace and national security markets.