Engility Holdings (NYSE: EGL) has closed on a $450 million senior secured credit facility that replaces its current $400 million credit facility.
The fresh facility comprises of a $200 million term loan and a $250 million revolving credit with a five-year term, Engility said Monday.
Engility also purchased an accordion feature to increase its debt commitment by an additional $150 million to $313 million, with $113 million outstanding under the company’s revolving credit.
Tony Smeraglinolo, Engility CEO, said the new credit facility helps the company cut future interest costs, increase its cash flow and grow its business.
Engility’s quarterly term loan payments starting Dec. 31 declined from 3.75 percent to 1.25 percent, its London Interbank Offered Rate to 3.05 percent and the company’s base borrowing rate to 5 percent.
Bank of America remained the credit facility’s administrative agent, Engility says.