Ducommun Incorporated Announces Amendment to Credit Facility

Rhea-AI Summary

Ducommun (NYSE: DCO) entered an amended credit facility effective November 24, 2025, replacing its prior financing with a $450 million revolving credit line and a $200 million term loan. The new facility matures in November 2030. Proceeds will repay the existing drawn amounts (about $95 million on the old revolver and a $225 million term loan), pay transaction fees and expenses, and fund working capital and other corporate purposes.

Highlights include upsizing the revolver from $200 million to $450 million with more than $300 million available at close, lowering borrowing spreads for immediate cost savings in 2026 and beyond, extending maturity by over three years, and improving financial and negative covenant flexibility.

Positive

• Revolver upsized from $200M to $450M
• >$300M available under revolver at close
• Facility maturity extended to November 2030
• Lowered spreads producing cost savings in 2026

Negative

• Total committed capacity increased to $650M from $425M
• Proceeds will pay transaction fees and expenses

Insights

Credit Markets Analyst

Refinance lowers cost of capital, extends maturity, and materially increases available liquidity.

The company replaced its prior facility with a new credit package comprising a $450 million revolving credit line and a $200 million term loan that matures in November 2030. At close the revolver had more than $300 million available, and proceeds will fully repay the prior drawn revolver balance of $95 million and the prior term loan of $225 million, while covering transaction fees and working capital needs.

Lowering spreads and extending the maturity by over three years should reduce near‑term interest expense and refinance risk, supporting liquidity planning into the medium term. Key items to watch: actual covenant text in the Form 8‑K, the realized interest spread vs prior facility, and the use of incremental revolver capacity for working capital or acquisitions; these are monitorable in the next several quarters.

Corporate Strategy Analyst

Upsized revolver and eased covenants increase strategic optionality for execution of growth plans.

The larger $450 million revolver and reported improvement in negative covenant provisions provide the company with additional operational flexibility compared with the previous $200 million revolver and existing term debt. Management cites plans to use the facility capacity for acquisitions and to support its VISION 2027 growth agenda.

Dependencies and risks remain tied to how the company deploys the extra liquidity and whether refinancing savings materialize as stated in 2026 and beyond; review of the Form 8‑K will reveal precise covenant relief and any usage limits. Monitor covenant definitions and borrowing costs reported in quarterly filings over the next 12–18 months to assess strategic impact.

Lowering Cost of Capital and Significantly Upsizing the Revolver

COSTA MESA, Calif., Dec. 01, 2025 (GLOBE NEWSWIRE) -- Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today announced that effective November 24, 2025, it entered into an amended credit facility consisting of a $450 million revolving line of credit and a $200 million term loan to replace its existing facility. The new facility will mature in November 2030.

Proceeds from the new financing will be used to fully repay the existing facility comprised of $95 million drawn down on a $200 million revolving credit line and a $225 million term loan, pay related transaction fees and expenses, fund working capital and other general corporate purposes.

Highlights:

• Enhanced liquidity by upsizing revolving credit line from $200 million to $450 million with more than $300 million in availability under the revolving credit line at close
• Improved cost of capital by lowering spreads resulting in immediate cost savings in 2026 and beyond
• Extended maturity profile by over three years
• Improved financial and negative covenant provisions providing the Company with greater operating flexibility

“We chose to take full advantage of favorable market conditions and refinance our credit facility to lower Ducommun’s cost of capital along with improving liquidity by upsizing our revolving line of credit,” said Stephen G. Oswald, chairman, president and chief executive officer. “The new credit facility provides us with significant additional firepower to execute on acquisition opportunities and grow the business in line with our VISION 2027 strategy. We are making great progress towards our VISION 2027 goals including growing our engineered products and aftermarket portfolio and this new capital structure will significantly help in that strategic area.”

Detailed information regarding the new credit facility is included in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission.

About Ducommun Incorporated

Ducommun Incorporated delivers value-added, innovative manufacturing solutions and products to customers in the aerospace, defense and industrial markets. Founded in 1849, the company specializes in two core areas – Electronic Systems and Structural Solutions – to produce complex products and components for commercial aircraft platforms, mission-critical military and space programs, and sophisticated industrial applications. For more information, visit Ducommun.com.

Forward Looking Statements

This press release includes "forward looking statements" within the meaning of the federal securities laws relating to Ducommun Incorporated as discussed above, including statements relating to Ducommun’s expectations about progress towards its VISION 2027 goals, growing its Engineered Products portfolio and business in line with its strategy, executing on potential acquisition opportunities, and similar expressions that concern Ducommun’s intentions or beliefs about future occurrences, expectations, or results. Forward looking statements are subject to risks, uncertainties and other factors that may change over time and may cause actual results to differ materially from those that are expected. It is very difficult to predict the effect of known factors, and Ducommun cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under “Risk Factors” in Ducommun’s reports filed with the SEC, including the Company’s Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K, and Current Reports on Form 8-K. The forward looking statements included in this press release are made only as of the date of this press release, and Ducommun does not undertake any obligation to (and expressly disclaims any such obligation to) update the forward looking statements to reflect subsequent events or circumstances.

CONTACTS:

Suman Mookerji, Senior Vice President, Chief Financial Officer, 657.335.3665

FAQ

What did Ducommun (DCO) announce on November 24, 2025 regarding its credit facility?

Ducommun entered an amended facility with a $450M revolver and a $200M term loan, effective November 24, 2025.

How long is Ducommun's new credit facility maturing and when does it expire for DCO?

The new credit facility matures in November 2030, extending the maturity by over three years.

How much availability did Ducommun (DCO) report under the new revolver at close?

The company reported more than $300 million in availability under the $450 million revolver at close.

What will Ducommun use proceeds from the new DCO financing for?

Proceeds will fully repay existing drawn debt (~$95M revolver and $225M term loan), pay transaction fees, and fund working capital and general corporate purposes.

Will Ducommun's (DCO) refinancing change its cost of capital?

Yes; the company said it lowered borrowing spreads, yielding immediate cost savings in 2026 and beyond.

How did the amended credit facility change Ducommun's (DCO) total committed capacity?

Committed capacity increased to $650 million (a $450M revolver plus $200M term loan) versus prior $425M capacity.