Blue Bird Corporation (NASDAQ: BLBD), manufacturer of electric and cleaner-emission school buses, has entered into a sixth amendment of its credit facility, dated Dec. 12, 2016, extending the maturity date through Dec. 31, 2024.
The sixth amendment also provides for revised covenants, modifications to the revolving credit facility, and a new pricing grid.
“The turnaround of the business is in full swing, with the majority of the older-priced backlog units being delivered by the end of 2022,” said Razvan Radulescu, chief financial officer of Blue Bird. “The new minimum consolidated EBITDA covenants reflect our expected improved financial performance and the return to historical profitability during 2023, with annualized run-rates of $50 million for fiscal Q2-Q3, and increasing to $60 million for Q2-Q4, while at still relatively low bus volumes compared to the pre-COVID years. I look forward to providing fiscal 2023 guidance during our earnings call on Dec. 12.”
"We are pleased to have the continued support of our lending partners with the extension of credit facility,” said Matthew Stevenson, Blue Bird's CEO. "The amended covenants and extended maturity of our loan provide Blue Bird with both flexibility and stability as our business continues to recover from the COVID-19 pandemic and associated global supply chain disruptions. We have seen significant operational progress throughout the second half of 2022, even while our production volumes continue to be supply-chain constrained.”