MIRAMAR, Fla.–(BUSINESS WIRE)–VSE Corporation (“VSE” or the “Company”) (NASDAQ: VSEC), a leading provider of aviation aftermarket distribution and repair services, today announced the successful refinancing of its Term Loan A and Revolving Credit Facility.
The Company entered into a new $300 million Term Loan A and a $400 million revolving credit facility, both maturing on May 2, 2030. These facilities refinance and replace the Company’s previous debt arrangements, which were scheduled to mature in October 2026. Borrowings under the new facilities will initially bear interest at the Secured Overnight Financing Rate (SOFR) plus 175 basis points, representing a reduction of approximately 60 basis points compared to the terms of the prior facilities.
“This refinancing supports the culmination of our multi-year transformation to a pure-play aviation aftermarket business and positions VSE to execute our growth strategies with increased agility,” said Adam Cohn, Chief Financial Officer of VSE Corporation. “We’re pleased to have secured more favorable terms, including a lower interest rate and expanded borrowing capacity, which will reduce our cost of capital and enhance our liquidity. The strong demand for this facility is a testament to the strength of our financial profile, the resilience of our business model, and the confidence our lenders have in VSE’s future.”
Citizens Bank, N.A. acted as the administrative agent, lead-left bookrunner and joint lead arranger, for the syndicate of nine banks.
