B/E Aerospace Inc., a maker of cabin interiors for commercial aircraft and business jets, got a $950 million five-year revolving credit line to replace a $750 million debt pact that was set to expire in 2015.
The new senior secured credit, which matures in August 2017, pays interest at 1.75 percentage points more than the London interbank offered rate, according to a regulatory filing yesterday. The interest rate on the revolver would have been about 2.21 percent had it been drawn on June 30, the company said in the filing.
B/E Aerospace, based in Wellington, Florida, had $1.75 billion of long-term debt consisting entirely of bonds at the end of June, according to the filing.
Moody’s Investors Service said today it gave the revolver an investment-grade rating of Baa2, while affirming B/E Areospace’s junk-category corporate ranking of Ba1. Standard & Poor’s, which rates the company BB+, assigned the revolver a BBB grade.
The new revolving credit has a so-called accordion feature allowing the company to request as much as $750 million of additional commitments or term loans, according to Moody’s.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.