Ducommun Incorporated announced an amendment to its credit facility, replacing its existing facility with a $450 million revolving line of credit and a $200 million term loan.
The new facility will mature in November 2030 and provides enhanced liquidity by upsizing the revolving credit line from $200 million to $450 million.
Proceeds from the financing will be used to repay the existing facility, fund working capital, and other corporate purposes.
Enhanced Liquidity
Revolver upsized from $200 million to $450 million with over $300 million availability.
Improved Cost of Capital
Lowered spreads leading to immediate cost savings from 2026 onwards.
Extended Maturity Profile
New facility extends maturity by over three years.
Greater Flexibility
Improved financial and covenant provisions offer increased operating flexibility.
- The refinancing is expected to lower Ducommun's cost of capital and provide significant additional firepower for acquisitions and business growth.
- The new capital structure aligns with Ducommun's strategic goals, including expanding the engineered products portfolio and aftermarket business.
The amendment to the credit facility positions Ducommun for strategic growth and increased operational flexibility, in line with its VISION 2027 strategy.