Aeroflex Announces Amendment to Credit Agreement
Aeroflex Holding Corp. (NYSE: ARX) today announced that Aeroflex Incorporated, its wholly owned subsidiary, has successfully obtained an amendment to its senior secured credit agreement (the “Agreement”).
The amendment increases flexibility under the total leverage ratio covenant, increases the interest rate payable with respect to outstanding loans under the facility by 1.5%, and provides for certain changes to the excess cash flow mandatory prepayment and call protection provisions under the facility.
The changes in the Agreement will result in additional interest expense of approximately $10 million per year. In addition, Aeroflex paid certain one-time fees and expenses in connection with the amendment, in the aggregate amount of approximately $4 million, including a consent fee to each lender approving the amendment.
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