Hexcel Closes on New Senior Secured Credit Facility
STAMFORD, Conn. -- June 27, 2013
Hexcel Corporation (NYSE: HXL) (Paris:HXL) today announced the successful
consummation of a new $600 million senior secured revolving credit facility
that will mature in five years. The new facility replaces the Company’s
previous senior secured credit facility ($82.5 million term loan and a $360
million revolving loan) that would have expired in July 2015.
The initial interest rate for the revolver is LIBOR + 1.50% through September
30, 2013, and then can range up or down depending upon the leverage ratio. The
new initial interest rate is 50 basis points lower than the prior facility,
and at the current leverage ratio the new rate would be LIBOR + 1.25% after
September 30, 2013. Interest costs are expected to decrease in the first year
by nearly $2.5 million, with the payback from the refinancing estimated to be
under a year. In addition to the lower interest rates and fees on undrawn
balances, the new facility provides greater flexibility. As a result of the
refinancing, Hexcel will accelerate certain unamortized financing costs of the
credit facility being replaced and the deferred expense on related interest
rate swaps incurring a pretax charge of $1.0 million (estimated after tax of
$0.01 per diluted share) in the second quarter of 2013.
Hexcel Corporation is a leading advanced composites company. It develops,
manufactures and markets lightweight, high-performance structural materials,
including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems,
adhesives and composite structures, used in commercial aerospace, space and
defense and industrial applications such as wind turbine blades.
Michael Bacal, 203-352-6826
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