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EXTON, Pa. - Innovative Solutions & Support (NASDAQ:ISSC) has entered into a new five-year, $100 million committed credit agreement with a lending syndicate led by JPMorgan Chase Bank, according to a press release statement issued Tuesday.
The new credit facilities replace the company’s existing $35 million line of credit and include a $30 million secured revolving loan facility, a $25 million secured term loan, and a $45 million secured delayed draw term facility. The agreement also provides an option to request up to $25 million in additional loan commitments under an accordion feature, subject to certain conditions. According to InvestingPro data, the company maintains a strong financial position with a healthy current ratio of 4.87 and a conservative total debt-to-capital ratio of just 0.09.
Under the terms of the agreement, the facilities will bear interest at Term SOFR plus 175 to 275 basis points, with the applicable margin determined by the company’s total net leverage ratio.
"The new facility provides expanded liquidity and improved flexibility, better enabling us to execute on our long-term growth strategy and capital allocation priorities," said Jeffrey DiGiovanni, Chief Financial Officer of IS&S.
The initial outstanding borrowing under the new credit agreement replaced the outstanding borrowings under the existing line of credit as of the closing date.
Innovative Solutions & Support, headquartered in Exton, Pennsylvania, specializes in engineering, manufacturing, and supplying advanced avionic solutions for commercial, business, and military markets. The company serves both airframe manufacturers and aftermarket services for fixed-wing and rotorcraft applications.
Further details regarding the credit agreement will be available in the company’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission on July 22, 2025. The company’s stock has demonstrated strong momentum, gaining nearly 85% year-to-date, though InvestingPro analysis suggests the stock is currently slightly overvalued. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which includes detailed financial analysis and expert recommendations.
In other recent news, Innovative Solutions and Support reported second-quarter 2025 earnings that exceeded market forecasts. The company announced earnings per share of $0.30, surpassing the anticipated $0.12. Revenue also outperformed expectations, reaching $21.9 million compared to the projected $14.23 million. These results indicate a strong performance for the company during this period. Analysts have taken note of these developments, and the positive earnings report has been a significant highlight. The earnings call transcript revealed that the company’s financial health appears robust, as evidenced by the substantial earnings and revenue figures. Investors and market analysts are closely watching how Innovative Solutions will continue to perform in the coming quarters.
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