Blue Bird closed a new $600 million senior secured credit facility, replacing its prior $250 million package and lifting committed borrowing capacity by $350 million, or 140%.
The new structure includes a $300 million revolving credit facility and a $300 million delayed draw term loan. At closing, Blue Bird had about $86 million of carry-over debt drawn under the new facilities, leaving more than $670 million of available liquidity.
The refinancing pushes the maturity out to September 2031 from November 2028, a stretch of nearly three years. It also reduces pricing: the interest-rate margin falls to SOFR plus 1.25% to 2.25%, depending on leverage, from SOFR plus 1.75% to 3.25%. The prior 0.10% credit spread adjustment was eliminated.
Blue Bird also expanded the delayed draw term loan’s use. The company said it can use the facility to refinance existing debt and primarily fund capital projects, research and development, and working capital.
The maximum total net leverage ratio was raised to 3.25x, with a temporary 0.50x step-up for four quarters after a qualifying acquisition of $75 million or more. The accordion feature was also increased to the greater of $250 million or 1.0x trailing 12-month EBITDA, plus additional amounts subject to a leverage test. Today the company's shares have moved 0.88% to a price of $57.03. For more information, read the company's full 8-K submission here.
