Power Solutions International Closes New $135 Million Senior Secured Credit Facility
June 29 2016 - 4:05PM
New Five Year Credit Facility Provides
Incremental Borrowing Availability
Power Solutions International, Inc. ("PSI" or "the Company")
(NASDAQ:PSIX), a leader in the design, engineer and manufacture of
emissions-certified alternative-fuel and conventional power
systems, today announced the closing of a $135 million Senior
Secured Credit Facility (the “Credit Facility”), consisting of a
new $60 million term loan with TPG Specialty Lending, Inc. and
affiliated funds managed by TSSP, a leading special situations
investment platform, and a $75 million asset based revolver with
Wells Fargo Bank, NA. The fully committed Credit Facility
matures in June 2021, subject to certain terms as further described
in the agreement, and replaces the Company’s existing $125
million asset based facility set to mature in June 2018, also
subject to certain terms. While the Credit Facility will
continue to be subject to a borrowing base, the new Credit Facility
provides meaningful incremental liquidity compared to the existing
asset based facility.
PSI’s Chief Financial Officer Michael Lewis commented, “We are
very pleased to have opportunistically accessed the capital markets
with a financing package that provides for increased borrowing
capacity and greater financial flexibility. We are
appreciative of the continued support from our existing Wells Fargo
banking relationship, and excited to have TPG Specialty Lending
join Wells Fargo as our valued banking partner for the years
ahead. Coupled with our April amendment to our $55
million Senior Notes, we’ve now fully executed our plan to
successfully optimize our debt structure, providing a solid
foundation for growth in the future.”
Cadence Credit Partners LLC acted as the Company’s exclusive
financial advisor for the transaction.
About Power Solutions International, Inc. Power
Solutions International, Inc. (PSI or the Company) is a leader in
the design, engineer and manufacture of emissions-certified,
alternative-fuel power systems. PSI provides integrated turnkey
solutions to leading global original equipment manufacturers in the
industrial and on-road markets. The Company's unique in-house
design, prototyping, engineering and testing capacities allow PSI
to customize clean, high-performance engines that run on a wide
variety of fuels, including natural gas, propane, biogas, gasoline
and diesel.
PSI develops and delivers complete industrial power systems that
are used worldwide in stationary and mobile power generation
applications supporting standby, prime, and Co-generation power
(CHP) applications; mobile industrial applications that include
forklifts, aerial lifts, industrial sweepers, aircraft ground
support, arbor, agricultural and construction equipment. In
addition, PSI develops and delivers power systems purpose built for
the Class 3 through Class 7 medium duty trucks and buses for the
North American and Asian markets.
For more information on PSI, visit www.psiengines.com.
Cautionary Note Regarding Forward-Looking
Statements This press release contains forward-looking
statements regarding the current expectations of the Company about
its prospects and opportunities. These forward-looking
statements are covered by the "Safe Harbor for Forward-Looking
Statements" provided by the Private Securities Litigation Reform
Act of 1995. The Company has tried to identify these forward
looking statements by using words such as "expect," "contemplate,"
"anticipate," "estimate," "plan," "will," "would," "should,"
"forecast," "believe," "outlook, " "guidance," "projection,"
"target" or similar expressions, but these words are not the
exclusive means for identifying such statements. The Company
cautions that a number of risks, uncertainties and other factors
could cause the Company's actual results to differ materially from
those expressed in, or implied by, the forward-looking statements,
including, without limitation, the continued development and
expansion of the market for alternative-fuel power systems;
technological and other risks relating to the Company's development
of its 8.8 and 4.3 liter engines, introduction of other new
products and entry into on-road markets (including the risk that
these initiatives may not be successful); the timing of new
products; the Company's ability to integrate recent acquisitions
into the business of the Company successfully and the amount of
time and expense spent and incurred in connection with the
integration; the risk that the economic benefits, cost savings and
other synergies that the Company originally anticipated as a result
of recent acquisitions are not fully realized or take longer to
realize than expected; the significant strain on the Company's
senior management team, support teams, manufacturing lines,
information technology platforms and other resources resulting from
rapid expansion of the Company's operations (including as a result
of recent acquisitions); volatility in oil and gas prices; changes
in environmental and regulatory policies; significant competition;
global economic conditions (including their impact on demand
growth); and the Company's dependence on key suppliers. For a
detailed discussion of factors that could affect the Company's
future operating results, please see the Company's filings with the
Securities and Exchange Commission, including the disclosures under
"Risk Factors" and "Cautionary Note Regarding Forward-Looking
Statements" in those filings. Except as expressly required by the
federal securities laws, the Company undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, changed circumstances or future events
or for any other reason.
Contact:
Power Solutions International, Inc.
Michael P. Lewis
Chief Financial Officer
+1 (630) 451-2290
Michael.Lewis@psiengines.com
and
Philip Kranz
Director of Investor Relations
+1 (630) 451-5402
Philip.Kranz@psiengines.com
Power Solutions (PK) (USOTC:PSIX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Power Solutions (PK) (USOTC:PSIX)
Historical Stock Chart
From Apr 2023 to Apr 2024