Kaman Corporation has closed on a new five-year $500 million credit facility replacing its prior $317.5 million credit facility.

The facility includes a collateralized security agreement and carries a standard financial covenant package, which the company believes reflects current market terms and conditions. The facility consists of a $400 million revolving credit facility and a term loan of $100 million.

It was brought to market by joint bookrunners and joint-lead arrangers J.P. Morgan Securities; Merrill Lynch, Pierce, Fenner & Smith Incorporated; and RBS Citizens, N.A.

JPMorgan Chase Bank acted as administrative agent. Bank of America and RBS Citizens were co-syndication agents. SunTrust Bank, KeyBank National Association, TD Bank, Branch Banking & Trust Company and Fifth Third Bank were co-documentation agents. Other lenders were The Northern Trust Company, PNC Bank, National Association, UBS AG, U.S. Bank National Association and Webster Bank.

The new facility includes an accordion feature that allows the company to increase the aggregate amount available to up to $700 million with additional commitments from lenders; consisting of a $100 million revolving credit component, and a $100 million term loan component.

The initial interest rate for borrowings under the facility will be LIBOR plus 150 basis points.

“Strong interest from our lenders combined with Kaman’s financial strength have enabled us to successfully upsize our credit facility by almost $200 million while achieving a 12.5 basis point reduction in our borrowing costs. The transaction reflects strong support from the banking community,” stated Kaman EVP and CFO, William C. Denninger. “This agreement increases our flexibility to execute our growth strategy.”

Bloomfield, CT-based Kaman conducts business in the aerospace and industrial distribution markets.