Duratek gets new $145 million credit facility via Credit Lyonnais

By Sara Rosenberg

New York, Dec. 17 - Duratek Inc. said it established a new $145 million credit facility consisting of a $30 million revolver and a $115 million term loan. Credit Lyonnais acted as the administrative agent, book manager and lead arranger on the deal.

Both the term loan and the revolver carry an initial interest rate of Libor plus 400 basis points, according to a company spokesperson.

Security for the loan is substantially all of the assets of the company and its direct and indirect subsidiaries.

The revolver will be used to fund working capital requirements, while the term loan was used to refinance existing debt and fund the repurchase of the company's 8% cumulative convertible redeemable preferred stock for $49.2 million plus accrued and unpaid dividends of $2.4 million.

"The transaction makes good financial sense for the company and its stockholders," said Robert Prince, president and chief executive officer, in a company news release. "It improves the company's near-term cash flow by significantly reducing the dividends on the Convertible Preferred Stock and replacing them with lower cost debt capital."

Duratek is a Columbia, Md., provider of radioactive materials disposition.

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