EXTON, PA — Innovative Solutions & Support, Inc. (NASDAQ: ISSC) has entered a new five-year, $100 million credit agreement arranged by JPMorgan Chase Bank, marking a significant increase in financial flexibility for the aerospace systems company. The facility replaces IS&S’s previous $35 million line of credit and reflects a strengthened commitment to supporting the firm’s long-term expansion plans.
The credit package includes a $30 million revolving loan, a $25 million term loan, and a $45 million delayed draw term loan. An additional $25 million may also be accessed through an accordion feature, contingent on certain conditions. Interest on the facilities will be based on the Term SOFR rate plus a margin ranging from 175 to 275 basis points, determined by IS&S’s leverage ratio.
The refinancing fully retires IS&S’s prior borrowings and provides enhanced liquidity to pursue growth initiatives.
“We are pleased by the strong support from our bank group enabling us to significantly expand the size of our credit facility, which highlights their confidence in our management team and strategy,” said Jeffrey DiGiovanni, Chief Financial Officer of IS&S. “The new facility provides expanded liquidity and improved flexibility, better enabling us to execute on our long-term growth strategy and capital allocation priorities, consistent with our focus on driving long-term value creation for our shareholders.”
The agreement, backed by a lending syndicate, positions IS&S to advance its operational goals, including investment in product innovation and market expansion. Full details will be disclosed in the company’s upcoming Form 8-K filing with the Securities and Exchange Commission.
The credit facility marks a pivotal step for IS&S as it scales operations and sharpens its focus on shareholder returns in a competitive aerospace and avionics landscape.
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