The Associated Press March 19, 2010, 4:49PM ET

GenCorp amends $280 million line of credit

GenCorp Inc. said Friday it amended a $280 million line of credit in a move that the aerospace and defense products maker said gives it greater financial flexibility.

GenCorp said the amendment to the senior credit facility allows the company to repurchase or refinance notes, take on more debt and conduct a rescission offer using stock or cash. The amendment also gives it more flexible terms surrounding its debt ratio, the company said.

The amendment reduces the capacity of its revolving credit facility to $65 million from $80 million and the letter of subfacility capacity to $100 million from $125 million. It also increases the interest rate on its borrowings.

Separately, the company said it agreed to repurchase $22.5 million of its 9 1/2 percent senior subordinated notes at a premium. It will also repurchase $14.3 million of its 2 1/4 percent convertible subordinated debentures at a discount.

Shares of GenCorp fell 6 cents to close at $4.67.

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