Aerojet Rocketdyne Holdings, Inc. Refinances Debt, Providing Greater Financial Flexibility
The Company expects the annualized reduction of interest expense to be approximately
"This is a fantastic deal for our Company. We are always open to ways to further optimize our capital structure. Our decision to refinance was driven by a unique opportunity to take advantage of robust debt market conditions so that we have greater flexibility to execute our long-term strategic agenda," said
"We are very pleased and appreciative of the strong demonstration of support from the banking community with regard to the strength of our business," said
The Company also announced today that on
Once the redemption of the Notes is completed, the Company's funded debt will primarily consist of
The new credit facility is collateralized by a substantial portion of the Company's assets, including certain real property. The Company is subject to certain limitations including, but not limited to, the ability to incur additional debt, and make certain restricted payments, such as stock repurchases and dividends. Additionally, the Company must maintain certain financial covenants.
"Safe Harbor" statements under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10K for the most recently ended fiscal year.
Contact information: Investors:
Kathy Redd, vice president and chief financial officer 916.355.2361 Brendan King, vice president and treasurer 916.351.8618 Pete Knudsen, director, investor relations 916.355.2252 Media: Glenn Mahone, vice president, communications 202.302.9941
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