GRAHAM CORP (GHM): debt financing — Graham Corp refinances debt with new $50M Wells Fargo revolver, lowers cost

GRAHAM CORP

New $50M senior secured revolver with Wells Fargo; $35M immediately available, $15M more subject to EBITDA and liquidity targets.
Proceeds used to repay $11.5M term loan and $725k exit fee from prior Bank of America facility.
Borrowing rate reduced ~25 bps to SOFR plus 1.25% for first year; margins based on leverage ratio.
Five-year maturity (Oct 2028); financial covenants: total leverage ≤3.50x, fixed charge coverage ≥1.20x.
CFO says refinancing enhances financial flexibility and provides less than 3-year payback of exit fee.

item 1.01 item 1.02 item 2.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

GRAHAM CORP incurred revolving credit of $50.0 million senior secured revolving credit facility with Wells Fargo Bank, National Association at Term SOFR plus an applicable margin ranging between 1.25% per annum and 2.50% pe maturing October 13, 2028.

Instrument: revolving credit
Principal: $50.0 million senior secured revolving credit facility
Counterparty: Wells Fargo Bank, National Association
Rate: Term SOFR plus an applicable margin ranging between 1.25% per annum and 2.50% pe
Maturity: October 13, 2028
Event: incurrence

Exact text from the filing

credit agreement (the “Credit Agreement”), by and among the Company and Wells Fargo Bank, National Association, as lender (the “Lender”). The Credit Agreement consists of (i) a $50.0 million senior secured revolving credit facility (the “Revolving Credit Facility”), of which $35.0 million is available to be borrowed by the Company under the Revolving Credit Facility

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

GRAHAM CORP terminated Loan Agreement with Bank of America, N.A. (effective 2023-10-13).

Action: termination
Agreement: credit facility
Counterparty: Bank of America, N.A.
Effective: 2023-10-13

Exact text from the filing

On October 13, 2023, concurrently with the closing of the Credit Agreement described above in Item 1.01, the Company terminated that certain Loan Agreement, dated as of June 1, 2021, between the Company and Bank of America, N.A., as amended, and repaid all outstanding borrowings thereunder in full.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

GRAHAM CORP entered into Credit Agreement with Wells Fargo Bank, National Association valued at $50.0 million senior secured revolving credit facility (effective 2023-10-13).

Action: entry
Agreement: credit facility
Counterparty: Wells Fargo Bank, National Association
Value: $50.0 million senior secured revolving credit facility
Effective: 2023-10-13

Exact text from the filing

On October 13, 2023, Graham Corporation (the “Company”) entered into a new credit agreement (the “Credit Agreement”), by and among the Company and Wells Fargo Bank, National Association, as lender (the “Lender”).

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Source: SEC EDGAR

accession 0001193125-23-258545

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