The Whittaker Corp. in Simi Valley has entered into an $85-million credit agreement with a group of lenders led by CIBC Oppenheimer.
The agreement consists of a $40-million, five-year term loan and a $45-million, three-year revolving credit arrangement. Interest rates under the new credit agreement will be substantially lower than under the company's prior agreement.
Initial proceeds of the agreement were used to repay all of the approximately $70 million of debt outstanding under the company's prior bank credit arrangement. In addition, Whittaker expects to use the credit to finance strategic aerospace acquisitions in an attempt to improve its position in the aerospace controls and safety systems businesses.
Whittaker develops fluid control and fire safety systems for aerospace and industrial applications, plus turnkey data networking systems for hospitals and other enterprises.
For the second quarter ended April 30, Whittaker reported sales from continuing operations of $34.95 million, compared with $22.93 million for last year's second quarter. Net income from continuing operations was $5.86 million or 52 cents per share, compared with a net loss of $4.65 million or 42 cents per share a year earlier.
Included in the company's net income of $16.27 million for the first six months of fiscal 1998 is income of $10.08 million or 90 cents per share resulting largely from the sale of Whittaker Xyplex during the first quarter of 1998.