Innovative Solutions & Support (IS&S) entered a new five-year, $100 million committed credit agreement with a lending syndicate led and arranged by JPMorgan Chase Bank. The credit agreement replaces the company’s existing $35 million line of credit. Under the terms of the credit agreement, the new credit facilities bear interest at term SOFR plus 175 to 275 basis points, with the applicable margin determined by the company’s total net leverage ratio, as calculated in accordance with the credit agreement.
The credit agreement provides for a $30 million secured revolving loan facility, a $25 million secured term loan, a $45 million secured delayed draw term facility, and an option, subject to certain conditions, to request up to $25 million in additional loan commitments under an accordion feature in the credit agreement. The initial outstanding borrowing under the new credit agreement, as of the closing date, replaced the outstanding borrowings under the existing line of credit.
“We are pleased by the strong support from our bank group enabling us to significantly expand the size of our credit facility, which highlights their confidence in our management team and strategy,” Jeffrey DiGiovanni, chief financial officer of IS&S, said. “The new facility provides expanded liquidity and improved flexibility, better enabling us to execute on our long-term growth strategy and capital allocation priorities, consistent with our focus on driving long-term value creation for our shareholders.”
