Astronics secures $300 million revolving credit facility through 2030

EAST AURORA, N.Y. - Astronics Corporation (NASDAQ:ATRO), which has seen its stock surge nearly 190% year-to-date according to InvestingPro data, has secured a new $300 million senior secured revolving credit facility that will mature in October 2030, replacing its previous asset-based facility that was set to expire in 2027.

The new facility includes an accordion feature allowing the company to request incremental commitments of up to $100 million, plus additional amounts if leverage requirements are met. According to a company press release, approximately $90 million was outstanding on the new revolver as of the announcement.

The revolving credit facility will accrue interest at a floating rate equal to SOFR plus an applicable margin ranging from 125 to 213 basis points based on leverage.

Nancy Hedges, Chief Financial Officer of Astronics, stated that the new facility "enhances our borrowing capacity, extends our maturity and provides greater flexibility and liquidity to support our operations and growth initiatives."

The company indicated that the successful execution of the new revolver reflects its strong financial performance in recent quarters. Astronics noted that this financing arrangement, combined with its recent convertible bond issue, positions the company to pursue growth opportunities in both commercial aerospace and defense markets.

Astronics Corporation provides technology solutions for aerospace, defense, and other mission-critical industries, offering power, connectivity, lighting, structures, interiors, and test technologies.

The details of the new revolving credit facility will be available in the company’s Current report on Form 8-K to be filed with the Securities and Exchange Commission.

In other recent news, Astronics Corporation has completed the acquisition of Bühler Motor Aviation in an all-cash transaction. This strategic move is expected to enhance Astronics’ capabilities in aircraft seat actuation systems, potentially generating approximately $22 million in annual revenue by 2026. In a significant financial development, Astronics has issued $225 million in 0% convertible senior notes due 2031, utilizing part of the proceeds to retire $132 million of its 5.5% convertible notes due 2030. The company has also priced $210 million of these notes in a private offering, with the transaction anticipated to close on September 16, 2025.

Additionally, Astronics plans to use the proceeds from this offering to partially refinance its existing debt and purchase capped call transactions to mitigate potential share dilution. In a related development, Craig-Hallum has initiated coverage on Astronics stock with a Buy rating and a $60 price target. The firm cites Astronics’ significant exposure to the aerospace and defense sector as a potential driver for future growth. These recent developments highlight Astronics’ strategic financial maneuvers and market positioning.

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