StandardAero Secures New Credit Facilities with $1,630.0 Million Term Loan B Facility

On October 31, 2024, StandardAero, Inc., a leading provider of maintenance, repair, and overhaul services, finalized a significant financial move by entering into a credit agreement with Dynasty Acquisition Co., Inc. and Standard Aero Limited. These entities, all subsidiaries of StandardAero, Inc., established a New Credit Agreement which includes several key components.

The agreement comprises a senior secured dollar term loan B facility that allows the U.S. Borrower and the Canadian Borrower to access an aggregate principal amount of $1,630.0 million and $620.0 million, respectively. Additionally, a senior secured multicurrency revolving credit facility has been made available, providing the U.S. Borrower an aggregate principal amount of up to $750.0 million. These Credit Facilities, including Term Loan Facilities and the Revolving Credit Facility, are set to mature on October 31, 2031, and October 31, 2029, respectively.

The funds acquired from the Term Loan Facilities, along with a portion from the Revolving Credit Facility, were used to repay amounts owed under previous credit agreements. These included the Prior Cash Flow Credit Agreement and the Prior ABL Credit Agreement. The remaining funds can be utilized for various purposes, such as working capital, capital expenditures, acquisitions, and general corporate needs.

Interest rates on borrowings under the Credit Facilities are variable, with different rates based on the currency and facility. The agreement also outlines amortization schedules and prepayment provisions. Notably, the agreement mandates certain financial and restrictive covenants that StandardAero must adhere to.

Furthermore, the New Credit Agreement requires joint and several guarantees by specified parties and pledges of certain assets to secure the obligations incurred. Defaults under the agreement, subject to grace periods and thresholds, could trigger events of default, including nonpayment, covenant breaches, or insolvency events.

For more detailed information regarding the terms and specifics of the New Credit Agreement, interested parties are advised to refer directly to the filing submitted to the Securities and Exchange Commission. The New Credit Agreement document is filed as Exhibit 10.1 and is incorporated by reference into the filing.

This StandardAero endeavor indicates a strategic financial move that aims to support the company’s operations and future growth prospects in the aviation services sector.

It is worth noting that all ETF units are listed on the New York Stock Exchange under the trading symbol SARO.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read StandardAero’s 8K filing here.

StandardAero Company Profile

StandardAero, Inc provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets.