GenCorp secures $100m facility

 The company exchanged $460m in senior secured notes last year.    

Aerospace and defense sector manufacturer GenCorp has secured a $100 million subordinated delayed draw term loan credit facility.

The company may use the new facility to refinance existing debt and repurchase common equity, as well as to provide working capital, according to a statement released Monday morning.

GenCorp did not disclose the provider of the term loan. Representatives for the Sacramento-based company had not responded to a request for comment at press time.

In general, money borrowed under the new facility will have an interest rate equal to the sum of “the greater of LIBOR and 1.00 percent per annum plus … 8.5 percent, or in the case of base rate loans, the base rate as it is defined in the credit agreement governing the new subordinated credit facility plus 7.5 percent”, according to the statement.

GenCorp netted $329.7 million in sales during the first quarter, a significant improvement from the $243.7 million the company netted in Q1 2013, according to an earnings report released last month. The company was carrying $550 million in net debt as 28 February.

Last year, GenCorp exchanged $460 million aggregate principal amount of 7.125 percent second-priority senior secured notes due 2021.