Incora Completes Comprehensive Recapitalization

Incora announced today it has completed a comprehensive recapitalization that will provide the company with ample liquidity to maintain and expand the business as the aerospace industry rebounds from the COVID-19 pandemic. 

The recapitalization, which includes an immediate liquidity infusion of $250 million, was supported by majorities across all of the company’s funded debt including bondholders and bank lenders.

“This is a resounding vote of confidence from our financing partners and a great day for Incora and its employees, customers, vendors and business partners,” said David Coleal, Incora’s chief executive officer.  “This transaction provides a combination of fresh liquidity, maturity relief and debt service reduction, allowing Incora the financial stability to continue delivering innovative, first-in-class service to our existing customers, and to seize new business opportunities as the defense industry signals increased growth and the commercial aerospace industry rebounds.”

Coleal continued, “I want to thank our customers and our supplier partners, I want to thank our bondholders for their partnership with Incora, and I also want to thank our employees for their hard work and unwavering commitment as we faced unprecedented industry headwinds together.  Our success through the COVID-19 pandemic would not have been possible without your dedication and teamwork.”

Participating bondholders, including Silver Point Finance, provided the additional long-term liquidity support to Incora and exchanged their existing secured and unsecured notes for new secured notes, extending the term of a portion of the secured notes and significantly reducing the amount of annual cash interest.

Key terms of the transaction include:

  • Incora received $250 million of new money 
  • Supporting lenders exchanged existing secured and unsecured bonds for new bonds due in November 2026 and November 2027, respectively, extending the maturity on over $450 million of bonds that would have been due in 2024
  • Cash interest payments will be significantly reduced for the next five years
  • Incora retains significant flexibility to engage in additional value-enhancing transactions

About Incora

Incora is the trade name for the group of companies formed by Wesco Aircraft and Pattonair, a leading provider of comprehensive supply chain management services to the global aerospace and other industries.  Beginning with a strong foundation in aerospace and defense, Incora also utilizes its supply chain expertise to serve industrial manufacturing, marine, pharmaceutical and beyond.  Incora incorporates itself into customers’ businesses, managing all aspects of supply chain from procurement and inventory management to logistics and on-site customer services.  The company is headquartered in Fort Worth, Texas, with a global footprint that includes 68 locations in 17 countries and more than 3,800 employees.  For more information, please visit incora.com.

To contact Incora regarding company news please contact: Gary Wells gary.wells@incora.com 2601 Meacham Blvd Suite 400
Fort Worth, TX 76137 Ph: +817-692-2178

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Incora has included statements in this press release that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act, as amended, and Section 27A of the Securities Act of 1933, as amended. As a general matter, forward-looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, Incora’s expectations with respect to the amend and extend transaction described herein. Such statements are intended to be identified by using words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “project,” “plan” and similar expressions in connection with any discussion of future operating or financial performance. Any forward-looking statements are and will be based upon Incora’s then-current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this press release. Incora undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Incora