TPI Composites Refinances Term Loan Facility
January 06 2017 - 8:00AM
TPI Composites, Inc., (“TPI” or the “Company”) (Nasdaq:TPIC), the
largest U.S.-based independent manufacturer of composite wind
blades, today announced that the Company entered into an Amended
and Restated Financing Agreement with HPS Investment Partners and
Capital One (the “Agreement”) on December 30, 2016. The Agreement
consists of a four-year term loan facility for an aggregate
principal amount of $75.0 million and a four-year $25.0 million
revolving credit facility, inclusive of a $15.0 million letter of
credit subfacility. The Agreement amends and restates in its
entirety the Company’s existing $100.0 million term loan credit
facility that was scheduled to mature on August 19, 2018, and
reduces the interest rate on the previous term loan credit facility
by 225 basis points.
“We are pleased to have completed this refinancing by the end of
2016 setting us up with a more flexible and cost effective capital
structure entering 2017. The new loan facility features a reduced
borrowing rate, the flexibility of a revolver component with letter
of credit capacity to free up approximately $10.0 million of
currently restricted cash as well as a reduced number of covenants
and a more favorable covenant structure. This increased flexibility
and improvement in our capital structure positions us well to
continue to capitalize on the strong wind industry growth and
ongoing outsourcing trends,” stated Bill Siwek, TPI’s Chief
Financial Officer.
The borrowings under the Agreement bear interest at a variable
rate of LIBOR plus an applicable margin of 5.75%, provided that in
no event will the base LIBOR rate be less than 1.00%. Principal
payments on the term loan are payable in equal quarterly
installments of $937,500 commencing on March 31, 2017, with the
outstanding balance of all borrowings to be repaid on December 30,
2020.
About TPI Composites, Inc.
TPI Composites, Inc. is the largest U.S.-based independent
manufacturer of composite wind blades for the wind energy market.
TPI delivers high-quality, cost-effective composite solutions
through long-term relationships with leading wind turbine
manufacturers. TPI is headquartered in Scottsdale, Arizona and
operates factories throughout the U.S., Mexico, China and
Turkey.
Investor Contact:
investors@tpicomposites.com
480-315-8742
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