StandardAero announced on October 31, 2024, the refinancing of its remaining debt, entering into a new credit agreement. This agreement provides for $2,250.0 million of new term loan facilities due October 31, 2031, bearing interest at Term SOFR + 2.25%. Additionally, a new $750.0 million revolving credit facility due October 31, 2029, was established, bearing interest at Term SOFR + 2.00%.
The proceeds from these new facilities were used to repay in full and terminate the company's existing debt facilities. The new term loan facilities reflect a 1.25% reduction in interest rate from previous levels, while the new revolving credit facility shows a 1.50% reduction. These lower interest rates are subject to adjustment based on the Consolidated First Lien Net Leverage Ratio.
Combined with the recent IPO, this refinancing results in a significantly de-leveraged capital structure and an improved cash flow profile for StandardAero. The company expects to achieve annual interest savings greater than $130 million compared to pre-IPO levels under current interest rates, enhancing its financial flexibility.
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