8/103 sources · 3 publishersUpdated Oct 8, 17:09 UTC
Blue Bird replaces prior debt facilities with $600 million financing package
Blue Bird has put a new $600 million senior secured financing arrangement in place, replacing its earlier $250 million facilities. The school-bus maker’s debt deadline moves from November 2028 to September 2031, while the structure includes a $300 million revolver and a $300 million delayed-draw loan.
Why it matters
Blue Bird said the revised facility gives it additional capacity to fund operations and product development while keeping a conservative balance-sheet posture. The lower pricing range also mechanically reduces the interest margin on borrowings.
Key facts
- 1Blue Bird’s new senior secured facility has $600 million of committed capacity and replaces prior facilities totaling $250 million. investing.com
- 2The financing includes a $300 million revolving facility and a $300 million delayed-draw term loan. investing.com
- 3At closing, approximately $86 million was outstanding under the new facilities, and available liquidity exceeded $670 million. investing.com
- 4The interest margin is SOFR plus 1.25% to 2.25%, compared with SOFR plus 1.75% to 3.25% previously. investing.com
- 5The agreement sets the maximum total net leverage ratio at 3.25x. investing.com
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.