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SEC filingHexcel Corporation entered a new $750 million revolving credit facility maturing 2031, borrowed $300 million to repay and terminate its prior credit facility expiring 2028 with no penalties.
Hexcel's refinancing extends its primary liquidity facility from April 2028 to March 2031, providing three additional years of committed revolver capacity at $750 million, enhancing financial flexibility for general corporate needs like acquisitions and investments. The $300 million draw fully refinanced the prior facility without penalties, avoiding near-term maturity pressure. Initial pricing remains competitive at SOFR plus 1.125% or base plus 0.125%, with potential reductions tied to stronger credit metrics via debt ratings or leverage, signaling lender confidence in Hexcel's profile. Expansion options up to $500 million offer scalability for growth opportunities. Covenant package is standard, balancing lender protections with operational room, though breaches could trigger acceleration. This positions Hexcel with extended runway and cost-efficient capital access amid its capital-intensive operations.