Provides Enhanced Flexibility and Significantly Reduces Interest Expense Going Forward
The New Credit Agreement includes a significantly lower variable interest rate on borrowings than the debt it replaces and has a final maturity date of June, 2020. The variable interest rate on the New Credit Agreement will initially be LIBOR plus 2.50%, subject to adjustments based on the Company’s leverage ratio. The Company estimates that the effective interest rate upon closing is approximately 3.50%.
“We’re very pleased to announce this new credit agreement, which will
decrease our interest expense and improve our net income significantly,”
said
Detailed information regarding the New Credit Agreement is included in
the Company's Current Report on Form 8-K filed with the
About
Founded in 1849,
Statements contained in this press release regarding other than
recitation of historical facts are forward-looking statements. These
statements are identified by words such as “may,” “will,” “begin,” “look
forward,” “expect,” “believe,” “intend,” “anticipate,” “should”,
“potential,” “estimate,” “continue,” “momentum” and other words
referring to events to occur in the future. These statements reflect the
Company’s current view of future events and are based on its assessment
of, and are subject to, a variety of risks and uncertainties beyond its
control, including, but not limited to, the state of the world
financial, credit, commodities and stock markets, and uncertainties
regarding the Company, its businesses and the industries in which it
operates, which are described in the Company’s filings with the
View source version on businesswire.com: http://www.businesswire.com/news/home/20150629005256/en/
Source:
Ducommun Incorporated
Joseph P. Bellino
Vice President and
Chief Financial Officer
310.513.7211
or
Investor Relations
Chris
Witty
646.438.9385
cwitty@darrowir.com