AEVEX Corp. 8-K

What Happened

• AEVEX Corp. (through operating subsidiary AEVEX Holdings, LLC) announced on April 20, 2026 that it entered into a new credit agreement with Bank of America, N.A. as administrative agent and a syndicate of lenders providing aggregate credit facilities of $375.0 million following the company’s initial public offering. The new facilities consist of a $100.0 million Term Loan, a $75.0 million Delayed Draw Term Loan, and a $200.0 million Revolving Credit Facility. At closing, $100.0 million was drawn under the Term Loan. The transaction also repaid and terminated the prior credit agreement dated March 18, 2020.

Key Details

• New Credit Facilities: $375.0M total — $100M Term Loan, $75M Delayed Draw Term Loan, $200M Revolver (includes $40M letter‑of‑credit sublimit and $30M swing line sublimit).
• Borrowing and pricing: Borrowings may be Term SOFR + 2.25%–3.00% or base rate + 1.25%–2.00%; revolver commitment fee 0.25%–0.50% (based on leverage). Delayed draw unused fee: 0% until Oct 17, 2026, then 0.50% p.a.
• Covenants and maturity: Facilities mature April 20, 2031. Financial covenants begin with quarter ending Sept 30, 2026 — maximum total net leverage ratio 3.50:1.00 (drops to 3.00:1.00 after June 30, 2029) and minimum interest coverage ratio 3.00:1.00. The Term and Delayed Draw loans amortize on a set schedule beginning Sept 30, 2026; the Revolver does not amortize.
• Security: The New Credit Agreement is guaranteed by certain domestic subsidiaries and secured by substantially all assets of the borrower and those guarantors, subject to customary exceptions.

Why It Matters

• This refinancing establishes a larger, secured credit package that gives AEVEX liquidity and flexibility post‑IPO, with $100M already drawn and up to $275M available if needed. The financial covenants and security package are important constraints investors should note because they affect the company’s ability to take on additional debt, make distributions, or pursue material acquisitions without covenant relief. The maturity (2031) and interest pricing determine the company’s near‑ to medium‑term financing costs and repayment profile.