Blue Bird Corporation announced it has entered into an amended credit agreement, significantly increasing its senior secured credit facilities to $600 million from the previous $250 million. The new agreement provides enhanced financial flexibility with a lower interest rate, more favorable terms, and an extended maturity date to support capital projects, R&D, and working capital.
Key Details
- Increased Facility Size: Total credit facility increased to $600 million, consisting of a $300 million revolving credit facility and a $300 million delayed draw term loan.
- Extended Maturity: The maturity date for the facilities has been extended from November 17, 2028, to September 30, 2031.
- Improved Pricing: The interest rate margin was reduced to SOFR plus 1.25% - 2.25%, down from SOFR plus 1.75% - 3.25%, and a 0.10% credit spread adjustment was eliminated.
- Favorable Covenants: The maximum total net leverage ratio was raised to 3.25x, with a temporary step-up available following a qualifying acquisition.