AeroVironment Lifts Its Revolving Credit Line To $450 Million, Adding BMO As A Lender
The drone maker added $100 million to its revolver and brought in a new bank, with the facility still maturing October 4, 2029.
AeroVironment, which makes drones, loitering munitions and other defense technology, raised its revolving credit commitments by $100 million, to $450 million from $350 million, and added BMO Bank as a new lender. The company disclosed the sixth amendment to its credit agreement in an 8-K filed Wednesday; the amendment was signed Friday, October 30.
A bigger revolver, a new bank
Bank of America is administrative agent on the facility. The existing lenders are JPMorgan Chase, U.S. Bank, Citizens Bank, Citibank and Royal Bank of Canada, and BMO Bank joins them as a new lender. Commitments were reallocated among all of the lenders.
The amendment is not a novation, meaning it modifies the original credit agreement dated February 19, 2021 rather than replacing it. The facility still matures on October 4, 2029, and it remains secured by substantially all assets of AeroVironment and its guarantor subsidiaries, which reaffirmed their guarantees and security interests.
Letters of credit take center stage
A fifth amendment, dated October 9, had already lifted the letter-of-credit sublimit to $150 million from $25 million and added JPMorgan Chase as a letter-of-credit issuer. It did not increase total commitments; the extra $100 million came with the sixth amendment.
The $150 million sublimit and a $10 million swingline sublimit, a short-term borrowing slice, both sit inside the revolver rather than on top of it. The new amendment also allows bilateral letters of credit and certain cash-collateralized letters of credit for deposit obligations, subject to the agreement's terms.
A defense supplier with growing needs
AeroVironment sells mostly to the US Department of Defense, and about 25% of its revenue in the fiscal year ended April 30, 2026 came from the US Army. Foreign customers accounted for 28% of sales revenue that year, according to its annual report. It reports two segments: Autonomous Systems and Space, Cyber and Directed Energy.
AeroVironment says it will file the sixth amendment as an exhibit to its quarterly report for the fiscal quarter ending October 31, 2026.
Sources
- 8-K Filing — AeroVironment Inc (AVAV) — SEC EDGAR
