Ducommun Incorporated (NYSE:DCO) (“Ducommun” or the “Company”) today announced that it has entered into an amendment of its credit agreement with its lenders that effectively reduces the current interest rate by 0.75% per annum. The amendment affects Ducommun’s $162.5 million term loan and $60 million revolving credit facility, the latter of which currently has no borrowings outstanding.
Specifically, the amendment reduces the interest rate payable by Ducommun under the credit agreement by 0.50% to the London Interbank Offer Rate (“LIBOR”) plus 3.75% per annum, or the base rate plus 2.75% per annum. In addition, the LIBOR rate is subject to a floor of 1.00% per annum and the base rate is subject to a floor of 2.00% per annum, a 0.25% reduction in each case. These changes are anticipated to lower interest expense for the Company going forward. Ducommun also expects to pay down approximately $25 - $30 million of debt this year.
The aforementioned abbreviated description of the Company’s amendment to its credit agreement is qualified in its entirety; a full description of Amendment Number 1 to the Credit Agreement dated as of March 28, 2013 will be filed as an exhibit on Form 8-K with the SEC.
About Ducommun IncorporatedFounded in 1849, Ducommun Incorporated provides engineering and manufacturing services to the aerospace, defense, and other industries through a wide spectrum of electronic and structural applications. The company is an established supplier of critical components and assemblies for commercial aircraft and military and space vehicles as well as for the energy market, medical field, and industrial automation. It operates through two primary business units – Ducommun AeroStructures (DAS) and Ducommun LaBarge Technologies (DLT). Additional information can be found at www.ducommun.com. 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 Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.