GA Telesis has announced the closing of a new five-year US$225 million ABL credit facility led by HSBC Bank USA and Fifth Third Bank, as joint lead arrangers. The syndication was met with overwhelming interest and allowed the company to improve terms while expanding its existing bank group.
The facility comprises nine global, super-regional and regional banks with HSBC Bank USA as administrative agent. The facility refinanced an existing US$225 million ABL facility led by HSBC, which was set to expire in 2022. The new facility has improved availability, pricing and other terms consistent with or better than the current facility with the support of a larger and more diverse bank group.
The proceeds from the facility will be used for general corporate purposes, acquisitions and funding future growth. In addition, the five-year term and competitive borrowing costs will provide financial stability while allowing the company to make longer-term acquisition decisions.
