Huntington Ingalls enters into $1.14 billion amended agreement

By Tali David

Minneapolis, Nov. 12 - Huntington Ingalls Industries, Inc. entered into a $1,139,000,000 amended and restated credit agreement on Nov. 6, according to an 8-K filed with the Securities and Exchange Commission.

The facility includes a $489 million term loan, which was the amount of term loan outstanding under the prior credit facility, and a $650 million revolving credit facility with a $350 million letter-of-credit subfacility and a $100 million swingline loan subfacility, which are unchanged from the prior credit facility.

JPMorgan Chase Bank, NA is the administrative agent, an issuing bank and a swingline lender, and Wells Fargo Bank, NA is a swingline lender.

The amended facility does not increase the amount of available credit under the company's prior credit facility, and the amortization schedule was unchanged.

Both facilities mature March 30, 2016.

The term loan and revolving credit facility have an initial interest rate of Libor plus 200 basis points. The margin may range from 150 bps to 250 bps based on the company's leverage ratio. The revolver also has an initial commitment fee of 35 bps on the unused balance. The commitment fee may range from 25 bps to 45 bps, also based on the leverage ratio.

Huntington Ingalls is a Newport News, Va.-based designer, builder and after-market service provider of nuclear and non-nuclear ships.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.