CPI Aerostructures Amends Credit Agreement To Provide
For An Increase In Revolving Credit Facility
December 6, 2012
Valley National Bank Joins as Lender
Edgewood, NY – CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced today that it has amended its existing credit agreement to increase revolving credit commitments from $17 million to $35 million and to continue a $3.9 million principal balance term loan. The revolving credit line was extended four years until December 5, 2016. The facility permits CPI Aero to request increases in revolving credit commitments to up to $50 million in aggregate. Valley National Bank joined Sovereign Bank, N.A. as a lender under the facility.
Edward J. Fred, CPI Aero’s CEO & President stated, “We are pleased to have Sovereign Bank once again participate in the Company’s growth and be our partner as we look to expand our business further. We are also excited to have Valley National Bank join this lending team and look forward to a long and fruitful relationship with them, as we have experienced with Sovereign Bank.
“This increase in total borrowing capability allows us to continue to bid on programs of significant magnitude, to work on accelerating our growth and to enhance our long-term visibility. We once again thank Sovereign Bank and Valley National Bankfor their support as we meet the challenges of a growing organization,” Mr. Fred concluded.
About CPI Aero
CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance pod systems in both the commercial aerospace and national security markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. Among the key national security programs that CPI Aero supplies are the E-2D Advanced Hawkeye surveillance aircraft, the UH-60 BLACK HAWK® helicopter, the MH-53/CH-53 variant helicopters, the F-16 fighter aircraft, the MH-60S mine countermeasure helicopter, the AH-1Z ZULU attack helicopter, the DB-110 reconnaissance pod and the ALMDS mine detecting pod. In the commercial aviation market CPI Aero manufactures products for the Gulfstream G650 ultra-large cabin business jet, the HondaJet advanced light jet, the Embraer Phenom 300 business jet, the new Cessna Citation X+, and the S-92® helicopter. CPI Aero is included in the Russell Microcap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aero’s SEC reports, including CPI Aero’s Form 10-K for the year ended December 31, 2011 and its Form 10-Qs for the quarterly periods ended March 31, 2012, June 30, 2012 and September 30, 2012.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
Chief Financial Officer
Investor Relations Counsel:
Jody Burfening/Sanjay M. Hurry