Business
VSE Corporation Completes Refinancing of Term Loan and Revolver
New Capital Structure Provides Lower Interest Rate, Increased Liquidity, and Enhanced Financial Flexibility MIRAMAR, Fla.--(BUSINESS WIRE)-- VSE Corporation
About this update from Vse Corporation
[{"type":"text","content":"\nNew Capital Structure Provides Lower Interest Rate, Increased Liquidity, and Enhanced Financial Flexibility\n\n MIRAMAR, Fla.--(BUSINESS WIRE)--\nVSE 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.\n\nThe 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.\n\n“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.”\n\nCitizens Bank, N.A. acted as the administrative agent, lead-left bookrunner and joint lead arranger, for the syndicate of nine banks.\n\nABOUT VSE CORPORATION\n\nVSE is a leading provider of aviation distribution and repair services for the commercial and business and general aviation (BG&A) aftermarkets. Headquartered in Miramar, Florida, VSE is focused on significantly enhancing the productivity and longevity of its customers' high-value, business-critical assets. VSE’s aftermarket parts distribution and maintenance, repair, and overhaul (MRO) services support engine component and engine and airframe accessory part distribution and repair services for commercial and BG&A operators. For more detailed information, please visit VSE's website at www.vsecorp.com.\n\nFORWARD-LOOKING STATEMENTS\n\nThis press release contains certain forward-looking stat...