BATAVIA, NY, March 31, 2022 – Graham Corporation (NYSE: GHM), a global business that designs, manufactures and sells critical equipment for the defense/space, energy/new energy and chemical/petrochemical industries, today announced the amendment to its five-year term loan and line of credit agreement which suspended the financial covenants through September 30, 2022.
Key terms of the amendment include the following:
• Waiver of the maximum total leverage ratio and minimum fixed charge coverage requirements through September 30, 2022;
• Reduces availability on the line of credit from $30 million to $15 million;
• Requires a maximum net loss of not greater than $10 million for the twelve-month period ending March 31, 2022;
• Requires adjusted EBITDA as defined by the agreement of not less than $2.0 million for the twelve-month period ending June 30, 2022, and not less than $2.25 million for the twelve-month period ending September 30, 2022; and
• Requires minimum liquidity of $10 million through the date upon which all financial reporting for the fiscal year ending March 31, 2023 is delivered to the bank and $20 million thereafter.
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