LMI Closes on Senior Secured Credit Facilities

LMI Aerospace Inc. has successfully completed the syndication of $350 million senior secured credit facilities to amend the senior secured credit facilities LMI initially entered into on December 28, 2012. RBC Capital Markets and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Book-Runners, led the closing of the senior credit facilities. RBC Capital Markets acted as Administrative Agent, and Wells Fargo Bank, N.A. was Syndication Agent.

The senior secured credit facilities consist of a five-year $125 million revolving credit facility and a 6-year $225 million term loan facility. As a result of strong investor demand, the new revolving credit facility was increased to $125 million from the initially announced figure of $75 million. In addition, the pricing on the $225 million six-year term loan facility has been reduced to a margin, as syndicated, of LIBOR plus 350 basis points in comparison to the initially announced margin at closing of LIBOR plus 475 basis points. The amended term loan facility, as syndicated, includes a 1.25% LIBOR floor consistent with the initially announced term loan facility. The syndicated facilities refinance borrowings incurred in connection with the December 28, 2012, closing of LMI's $240 million purchase of Valent Aerostructures, LLC.

"We are very pleased with the results of the financing we completed today. The larger revolving credit facility should improve our liquidity and should provide increased operational flexibility," says Ronald S. Saks, Chief Executive Officer of LMI. "As a result of the impact of the lower cost of debt, the acquisition of Valent is now expected to be accretive to LMI's 2013 earnings, rather than slightly dilutive, as was originally announced in the December 6, 2012, press release. Additionally, we anticipate the accretive impact will extend to LMI's 2014 earnings. We intend to provide more detail on guidance during our year-end conference call and press release."

LMI plans to provide updated guidance for FY 2013, which will reflect the Valent acquisition, together with its release of LMI's 2012 annual financial results.