Business
Magellan Aerospace Corporation announces entering into an amended credit agreement and extension of previously announced subordinated loan arrangements
TORONTO, Dec. 21, 2012 /CNW/ - Magellan Aerospace Corporation (" Magellan " or the " Corpor...
About this update from Magellan Aerospace Corporation
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Dec. 21, 2012 /CNW/ - Magellan Aerospace Corporation (\"Magellan\" or the \"Corporation\") announces that it has amended its operating credit agreement with its\n existing lenders and has extended its subordinated loan financing with\n Edco Capital Corporation (\"Edco\") (which is wholly owned by N. Murray Edwards, Chairman of the Board of\n the Corporation) in order to provide revolving loan facilities for\n Magellan for a two year period, subject to annual extensions of such\n two year period.\n\n\nUnder the terms of the amended operating credit agreement, Magellan and\n the lenders have agreed that the maximum available under the operating\n credit facility will be amended to Cdn. $115 million (down from Cdn.\n $125 million) and U.S. $35 million (down from U.S. $50 million) and\n include a Cdn. $50 million accordion provision which will provide\n Magellan with the option to increase the size of the operating credit\n facility to $200 million.  The maturity date of the facility will be\n extended to December 21, 2014 and will continue to be fully guaranteed\n by Mr. Edwards in consideration of the continued payment by the\n Corporation to Mr. Edwards of an annual fee payable monthly equal to\n 0.50% (down from current annual fee equal to 0.63%) of the loan amount.\n Extensions of the facility are subject to mutual consent of the\n syndicate of lenders and the Corporation and, in the case of the\n guarantee of the facility, to the consent of Mr. Edwards.\n\n\nThe terms of the amended operating credit facility permit Magellan to\n repay, in whole or in part, the secured subordinated loan outstanding\n as of September 30, 2012 in the principal amount of $30 million from\n Edco (the \"Edco Loan\") provided there is no current default or event of\n default under the operating credit facility and after the repayment of\n the loan Magellan has at least $25 million in availability under the\n operating credit facility.\n\n\nIn addition, the extension and restatement of the Edco Loan was\n completed.  The Corporation has the right to repay the Edco Loan at any\n time without penalty.  The Edco Loan was extended to January 1, 2015 in\n consideration of the payment of a fee to Edco equal to 0.75% of the\n principal amount outstanding on December 21, 2012.\n\n\nThe extension of the loan by Edco and the ...