VSE pushes credit facility out year and a half, lowers Libor floor

Chicago, Aug. 2 – VSE Corp. amended its credit agreement on July 23 with Citizens Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment relates to the fourth amended and restated business loan and security agreement originally dated Jan. 5, 2018.

The maturity date has been extended on the revolver, the swingline facility and the term facility to July 23, 2024 from Jan. 5, 2023.

The Libor floor has been reduced to 0.5% from 0.75%.

The required quarterly amortization payments have been changed on the term loan to $3.75 million.

Additionally, Libor fallback language has been added.

And, the table for the maximum total funded debt to EBITDA ratio has been modified. The maximum ratio is 4.5x through Dec. 31, then 4.25 from Jan. 1, 2022 to June 30, 2022, 4x from July 1, 2022 through Sept. 30, 2022, 3.75x from Oct. 1, 2022 through Dec. 31, 2022, 3.5x from Jan. 1, 2023 through March 31, 2023 and then finally 3.25x from April 1, 2023 to the end of the life of the loan.

VSE is a diversified logistics and services company based in Alexandria, Va.

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