A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
accordion featurefinancial
An accordion feature is a clause in a loan or financing agreement that allows a company to expand the size of a credit line or the amount of securities available under the same contract without drafting a completely new deal. Like a suitcase that can be extended to hold more items, it gives a company quick flexibility to raise extra money, which can help fund growth but may increase debt or dilute existing shareholders—so investors watch it for changes in risk and ownership.
capital allocation strategyfinancial
A capital allocation strategy is a plan for deciding how a company distributes its financial resources among various needs, such as investing in growth, paying dividends, or reducing debt. For investors, it signals how effectively a company manages its money to create value and sustain long-term success, much like a person deciding how to divide their budget for savings, expenses, and investments.
financial covenantsfinancial
Financial covenants are rules written into loan or bond agreements that require a company to keep certain financial measures within agreed limits—examples include minimum cash, maximum debt levels, or minimum profit margins. They act like guardrails for lenders: breaking a covenant can force renegotiation, trigger penalties or default, and quickly affect a company’s available cash and stock value, so investors watch them as early warning signs of financial stress.
debt covenantsfinancial
Debt covenants are rules written into a loan or bond agreement that limit what a borrower can do — for example, requirements to keep profits or assets above a certain level, limits on taking more debt, or restrictions on selling key assets. They matter to investors because breaking these promises can force immediate repayment, raise borrowing costs, or signal financial stress, much like breaking the terms of a lease can lead to penalties or eviction.
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DAVIDSON, N.C.--(BUSINESS WIRE)--
Curtiss-Wright Corporation (NYSE: CW) today announced that it has entered into a new credit agreement with a group of nine banks increasing the size of its revolving credit facility to $1 billion, while also expanding the accordion feature to $500 million. The new replacement credit facility has a five-year term set to mature in May 2031. The prior credit facility which was set to expire in May 2027 has been terminated.
“We are pleased to announce the successful execution of our new and expanded revolving credit facility, facilitating greater financial flexibility to deliver on our disciplined capital allocation strategy that consists of pursuing strategic acquisitions as an accelerator to organic growth, optimizing our operational investments, and returning capital to our shareholders," said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. “This credit facility further reinforces our already strong and healthy balance sheet, and along with our continued strong cash flow generation, it underscores our ability to continue to deliver on our Pivot to Growth strategy.”
Curtiss-Wright expects to use the credit facility for general corporate purposes, which may include the funding of possible future acquisitions or supporting internal growth initiatives. The new agreement provides for similar financial and debt covenants that are no more restrictive than those in the prior agreement.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE: CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Nuclear Power, Process and Industrial markets. We leverage a workforce of approximately 9,100 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.
