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Wells Fargo Bank Provides $50MM Revolving Credit Facility to Graham Corporation

Date: Oct 17, 2023 @ 07:50 AM
Filed Under: Manufacturing

Graham Corporation, a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, successfully closed on a new, five-year $50 million senior secured revolving credit facility with Wells Fargo Bank of which $35 million is immediately available. The Company will use the proceeds from the facility and cash on hand to pay down the remaining $11.5 million balance of its term loan and the $725,000 exit fee from its previous lending agreement amendments. The new facility will reduce current borrowing rates by approximately 25 basis points to SOFR plus 1.25%.

The additional $15 million of the facility automatically becomes available after the Company achieves three consecutive quarters of trailing twelve month adjusted EBITDA of $15 million and minimum liquidity of $7.5 million as defined in the credit agreement.

Christopher Thome, Chief Financial Officer, commented, “This new credit facility reflects the progress we are making as a Company and provides us greater financial flexibility to execute on our strategy for growth. The revolver expands our borrowing capacity while reducing our cost of borrowing. Importantly, the savings from the refinancing will provide for a less than three-year payback of the exit fee.”

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