Financing ·
Blue Bird closes $600M credit facility refinancing, extending maturity to September 2031
BLBDBlue Bird Corp
Blue Bird Corporation closed a new $600 million senior secured credit facility on September 30, 2026, replacing its previous $250 million facilities. The agreement consists of a $300 million revolving credit facility and a $300 million delayed draw term loan, extending the maturity date from November 17, 2028, to September 30, 2031. Borrowings under the delayed draw term loan are available for up to 24 months and may be used to refinance existing debt or fund capital projects, research and development, and working capital. The new terms lower the interest rate margin to SOFR plus 1.25% to 2.25%, reduce the maximum total net leverage ratio to 3.25x, and expand the accordion feature. At closing, approximately $86 million of carry-over debt was drawn under the new facilities. Blue Bird Corporation designs, engineers, and manufactures school buses with a focus on safety and low- or zero-emission solutions.