Accelevation Holdings entered into a new $650 million senior secured credit agreement that replaces credit facilities established before the company’s initial public offering and provides additional financial flexibility to support its long-term growth strategy.
The financing consists of a $400 million revolving credit facility and a $250 million Term Loan A, both of which mature in 2031. The facilities are currently priced at Term SOFR plus 1.50% to 2.50%, representing a substantial reduction from the company’s previous borrowing rate of SOFR plus 4.50% to 5.25%.
Accelevation said the new financing strengthens its balance sheet, extends its maturity profile, lowers borrowing costs, and gives the company additional flexibility to invest in its operations and pursue strategic priorities. The refinancing follows Accelevation’s transition to the public equity markets and comes as the company operates with a lower level of debt.
Bank of America served as administrative agent and collateral agent. BofA Securities, JPMorgan Chase Bank, Morgan Stanley Senior Funding, KeyBank National Association, and PNC Capital Markets served as joint lead arrangers. BofA Securities and JPMorgan Chase Bank also served as joint bookrunners.
Accelevation designs, manufactures, and installs customized structural, electrical, and mechanical systems for mission-critical infrastructure, combining U.S.-based manufacturing with nationwide field service capabilities.
KEY QUOTES:
“We are pleased to announce the closing of these new facilities, which strengthen our balance sheet and enhance our financial flexibility as we continue to execute our growth strategy. As we transition to the public equity market with a lower level of debt, it was important to access more cost-efficient capital. The new facilities extend our maturity profile, reduce our borrowing costs, and provide flexibility to continue investing in our business. We believe this capital structure positions us well to support our customers and execute our long-term strategic priorities.”
Ken Krause, Chief Financial Officer of Accelevation
