AeroVironment inks $300M pro rata facility for Arcturus UAV buy

AeroVironment Inc. disclosed that on Feb. 19, the company entered into a $300 million, five-year pro rata credit facility in connection with its completed acquisition of Arcturus UAV.

The pro rata facility includes a $200 million term loan A and a $100 million revolver. Pricing is tied to a leverage-based grid, at L+150-225. BofA Securities, J.P. Morgan and U.S. Bank acted as joint lead arrangers. Bank of America is administrative agent.

The facility is covered by a total leverage covenant set at 3x and a fixed charge coverage ratio set at 1.25x.

As reported, AeroVironment in January entered into a loan commitment with BofA Securities, J.P. Morgan and U.S. Bank providing a $200 million term loan A and $100 million revolver in connection with the acquisition. AeroVironment said it will fund roughly $155 million of the acquisition from cash on hand and pro forma net leverage is expected to be roughly 0.5x adjusted EBITDA at close.

AeroVironment designs, develops, produces, supports and operates a portfolio of products and services for government agencies and businesses.