Graham Corporation closed on a new, five-year $50 million senior secured revolving credit facility with Wells Fargo Bank, of which $35 million is immediately available. The company will use the proceeds from the facility and cash on hand to pay down the remaining $11.5 million balance of its term loan and the $725,000 exit fee from its previous lending agreement amendments. The new facility will reduce current borrowing rates by approximately 25 basis points to SOFR plus 1.25%.

The additional $15 million of the facility automatically becomes available after the company achieves three consecutive quarters of trailing twelve month adjusted EBITDA of $15 million and minimum liquidity of $7.5 million, as defined in the credit agreement.

“This new credit facility reflects the progress we are making as a company and provides us greater financial flexibility to execute on our strategy for growth,” Christopher Thome, chief financial officer of Graham, said. “The revolver expands our borrowing capacity while reducing our cost of borrowing. Importantly, the savings from the refinancing will provide for a less than three-year payback of the exit fee.”