Exhibit 99.1
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 | | | | News Release |
Graham Corporation ¨ 20 Florence Avenue ¨ Batavia, NY 14020
IMMEDIATE RELEASE
GRAHAM CORPORATION REFINANCES DEBTWITH NEW, LOWER COST
$50 MILLION REVOLVING CREDIT FACILITY
BATAVIA, NY, October 16, 2023 – Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, today announced that it has successfully closed on a new, five-year $50 million senior secured revolving credit facility with Wells Fargo Bank N.A. of which $35 million is immediately available. The Company will use the proceeds from the facility and cash on hand to pay down the remaining $11.5 million balance of its term loan and the $725,000 exit fee from its previous lending agreement amendments. The new facility will reduce current borrowing rates by approximately 25 basis points to SOFR plus 1.25%.
The additional $15 million of the facility automatically becomes available after the Company achieves three consecutive quarters of trailing twelve month adjusted EBITDA of $15 million and minimum liquidity of $7.5 million as defined in the credit agreement.
Christopher Thome, Chief Financial Officer, commented, “This new credit facility reflects the progress we are making as a Company and provides us greater financial flexibility to execute on our strategy for growth. The revolver expands our borrowing capacity while reducing our cost of borrowing. Importantly, the savings from the refinancing will provide for a less than three-year payback of the exit fee.”
About Graham Corporation
GHM is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. The Graham Manufacturing and Barber-Nichols’ global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems.
Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
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