HUNTINGTON BEACH, Calif.–(BUSINESS WIRE)–Karman Space & Defense (“Karman” or “the Company”) (NYSE: KRMN), a leader in the design, testing, volume manufacturing, and sale of highly engineered, mission-critical subsystems for advanced missile, uncrewed aircraft, and space systems today announced the successful completion of a refinancing transaction that replaces its previous term loan and revolving credit facility, significantly extending maturity dates and reducing interest expense.
“This refinancing transaction represents another important step forward for Karman, strengthening our balance sheet and providing us with significant flexibility to support organic growth and strategic acquisitions,” said Mike Willis, Chief Financial Officer of Karman Space & Defense. “We support a large and diverse portfolio of customers and programs that align well with the U.S. government’s strategic priorities. Our improved balance sheet will help us execute on our plans and create shareholder value.”
The new credit facilities include a $300,000,000 Term Loan B, which matures in April 2032 and is priced at Secured Overnight Finance Rate (“SOFR”) + 3.50%, and an undrawn, $50,000,000 Revolving Credit Facility, which expires in April 2030 and is priced at SOFR + 2.75% to 3.25%. The term loan B has been widely distributed to institutional investors. The refinancing represents a significant maturity extension and interest rate reduction of 275 basis points in the case of the Term Loan B, resulting in interest expense savings of more than $8 million annually as compared to the previous Term Loan.
