ESCO Technologies Inc. (ESE) announced that it has finalized a commitment with its lenders to enter into a new, extended and increased credit facility.

The new five-year agreement, which replaces the previous credit facility dated December 21, 2015, extends the maturity date through September 27, 2024, and lowers the total costs by reducing the outstanding borrowing rates and commitment fees.

The new facility includes a $500 million revolving line of credit (increased from $450 million) as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders.

Proceeds from the new facility will be used to provide liquidity for general corporate purposes, including working capital, research and development spending, capital expenditures, and acquisitions.

The bank syndication supporting the new facility is comprised of a diverse group of eight banks led by JPMorgan Chase Bank, N.A. as Administrative Agent and BMO Harris Bank, N.A as Syndication Agent.