Engility Holdings, Inc. announced that it has replaced its existing $400 million senior secured credit facility with a new $450 million senior secured credit facility. Bank of America, N.A. continued as administrative agent for the new credit facility.

This new facility, which consists of a $200 million term loan and a $250 million revolving credit line, has a term of five years. The facility also contains an accordion feature that allows Engility to increase its availability by up to an additional $150 million. Upon closing of the new facility, Engility had total indebtedness of $313 million, of which $113 million was outstanding under its revolving credit line.

The new facility reduces the company's quarterly principal payments on its term loan from $12.6 million (or 3.75%) to $2.5 million (or 1.25%), with the initial payment commencing on December 31, 2013. The new facility also decreases the company's current LIBOR borrowing rate from 5.75% to approximately 3.05%, and decreases the company's current base borrowing rate from 6.75% to 5.00%.

"This new facility significantly reduces our future interest expense, substantially enhances our cash flow and provides us with additional financial flexibility to grow our business," said Engility CEO Tony Smeraglinolo.

"We appreciate the support of our lenders and their recognition of the strength of our business model and our position in the market."

Engility is a pure-play government services contractor providing highly skilled personnel wherever, whenever they are needed in a cost-effective manner. Headquartered in Chantilly, VA, Engility is a leading provider of specialized technical consulting, program and business support services, engineering and technology lifecycle support, information technology modernization and sustainment, supply chain services and logistics management, and training and education for the U.S. Government with approximately 7,800 employees worldwide and sales of $1.66 billion for 2012.