V2X, Inc.: Repricing and Extending Its Term Loan A and Revolving Credit Facility
RESTON, Va. – April 3, 2025 – V2X, Inc., a leading technology company specializing in vehicle-to-everything (V2X) communication solutions, announced today the successful completion of the repricing and extension of its existing debt facilities. The company has repriced its $238 million Term Loan A and extended the maturity date by three years. Additionally, V2X, Inc. extended its $500 million Revolving Credit Facility (“Revolver”) for an extra two years.
Key Terms of the Debt Refinancing
The Term Loan A will now bear an interest rate of LIBOR + 4.50%, down from the previous rate of LIBOR + 5.25%. The Revolver will have an interest rate of LIBOR + 3.50%, a decrease from its previous rate of LIBOR + 4.25%. Both facilities will have new maturity dates:
- Term Loan A: January 1, 2029
- Revolver: January 1, 2027
Impact on V2X, Inc.
The debt refinancing is expected to provide V2X, Inc. with significant financial benefits. The lower interest rates on the Term Loan A and Revolver will reduce the company’s annual interest expenses by approximately $11 million. This cost savings will contribute to the company’s bottom line and enable it to reinvest in research and development, expand its product offerings, and potentially pursue strategic acquisitions.
Impact on Consumers
The successful debt refinancing is a positive sign for V2X, Inc. and its stakeholders, including consumers. With reduced interest expenses, the company can focus on delivering innovative V2X communication solutions that will improve the safety, efficiency, and connectivity of vehicles and their surroundings. As V2X technology continues to evolve, consumers will benefit from enhanced traffic management systems, improved road safety, and more seamless communication between vehicles and infrastructure.
Impact on the Global Economy
The debt refinancing by V2X, Inc. is a testament to the company’s financial strength and its ability to navigate the current economic climate. The successful repricing and extension of its debt facilities demonstrate investor confidence in the company’s growth prospects and its commitment to delivering value to its shareholders. Additionally, the cost savings from the refinancing will contribute to V2X, Inc.’s continued investment in R&D and innovation, which will drive economic growth in the technology sector and beyond.
Conclusion
V2X, Inc.’s successful debt refinancing is a significant milestone for the company and a positive sign for the future. With lower interest rates and extended maturity dates, V2X, Inc. is well-positioned to continue its growth trajectory and deliver innovative V2X communication solutions that will benefit consumers and contribute to the global economy. As the world becomes increasingly connected, the role of V2X technology in enhancing safety, efficiency, and communication between vehicles and their surroundings will only grow in importance.
V2X, Inc. remains committed to its mission of creating a safer, more connected world through advanced V2X communication solutions. With its strong financial footing and a focus on innovation, the company is poised to lead the way in this exciting and rapidly evolving industry.
