Business
VSE Corporation Amends, Extends and Upsizes Credit Facility
ALEXANDRIA, Va.--(BUSINESS WIRE)-- VSE Corporation (NASDAQ: VSEC, "VSE", or the "Company"), a leading provider of aftermarket distribution and maintenance,
About this update from Vse Corporation
[{"type":"text","content":" ALEXANDRIA, Va.--(BUSINESS WIRE)--\nVSE Corporation (NASDAQ: VSEC, \"VSE\", or the \"Company\"), a leading provider of aftermarket distribution and maintenance, repair and overhaul (\"MRO\") services for land, sea and air transportation assets for government and commercial markets, today announced that it has successfully amended, extended and upsized the Company’s existing credit facility with its lending syndicate.\n\n“Our amended credit facility serves to lower borrowing costs, increase availability under our term loan, and extend the maturity date; the combination of which further positions us to continue to execute on our transformation and growth strategy,” said Stephen Griffin, Chief Financial Officer of VSE Corporation. “We want to thank our lending syndicate for their continued partnership and confidence in the strategic direction of our business.”\n\nThe amendment provides for the following:\n\n\nIncreases total term loan borrowing capacity from $49 million to $100 million and maintains revolving credit facility capacity of $350 million;\n\n\nExtends the maturity date of the term loan and revolving credit facility from July 2024 to October 2025;\n\n\nModifies required quarterly amortization payments on the term loan from $3.8 million to $2.5 million;\n\n\nTransitions the benchmark rate from LIBOR to SOFR with a SOFR floor of 0.00%;\n\n\nRevises the maximum total leverage ratio from 4.25x to 4.50x, with such ratio decreasing to 3.50x by October 2024; and\n\n\nProvides a reduction in interest rate margins, with such margins and fees stepping down in accordance with revised leverage ratios.\n\n\nABOUT VSE CORPORATION\nVSE is a leading provider of aftermarket distribution and repair services for land, sea and air transportation assets for government and commercial markets. Core services include MRO services, parts distribution, supply chain management and logistics, engineering support, and consulting and training services for global commercial, federal, military and defense customers. VSE also provides information technology and energy consulting services. For additional information regarding VSE's products and services, visit www.vsecorp.com.\n\nFORWARD-LOOKING STATEMENTS\nThis press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harb...