RACINE, Wis., May 20, 2020 /PRNewswire/ -- Modine Manufacturing
Company (NYSE: MOD), a diversified global leader in thermal
management technology and solutions, today announced that it has
amended its existing credit agreements to provide covenant
flexibility through fiscal 2022.
Key Amendment Highlights:
- Raises the leverage ratio covenant limit for the next two
fiscal years, ending in the fourth quarter of fiscal 2022
- Provides additional flexibility to execute automotive exit
strategy
- Includes higher interest rates on borrowings during period of
covenant flexibility and 1 percent LIBOR floor
"While Modine maintains a relatively strong balance sheet and a
diversified business portfolio, we wanted to proactively protect
our liquidity by ensuring we have maximum flexibility during this
period of heightened uncertainty," said Modine Vice President, Finance and Chief
Financial Officer, Michael B.
Lucareli. "We value our relationships with our lenders
and believe that these amendments to our credit agreements provide
us with the flexibility to strategically manage the business
through this pandemic and position us well for when our markets
recover. We appreciate the strong support of our
liquidity partners as we navigate through this global crisis and
continue to work towards the strategic exit of our automotive
business."
The Company will hold its fourth quarter fiscal 2020 earnings
call on May 29, 2020, and will
further discuss these amendments and provide a more detailed update
at that time.
About Modine
Modine, with fiscal 2019 revenues of $2.2
billion, specializes in thermal management systems and
components, bringing highly engineered heating and cooling
components, original equipment products, and systems to diversified
global markets through its three complementary segments: VTS; CIS;
and BHVAC. Modine is a global company headquartered in Racine, Wisconsin (USA), with operations in
North America, South America, Europe and Asia. For more information about Modine, visit
www.modine.com.
Forward-Looking Statements
This press release contains statements, including information
about future financial performance and market conditions,
accompanied by phrases such as "believes," "estimates," "expects,"
"plans," "anticipates," "intends," and other similar
"forward-looking" statements, as defined in the Private Securities
Litigation Reform Act of 1995. Modine's actual results, performance
or achievements may differ materially from those expressed or
implied in these statements because of certain risks and
uncertainties, including, but not limited to those described under
"Risk Factors" in Item 1A of Part I of the Company's Annual Report
on Form 10-K for the year ended March 31,
2019 and under Forward-Looking Statements in Item 7 of Part
II of that same report, and in the Company's Quarterly Report on
Form 10-Q for the quarters ended June 30,
2019, September 30, 2019, and
December 31, 2019. Other risks
and uncertainties include, but are not limited to, the following:
the impact of the COVID-19 pandemic on the national and global
economy, our business, suppliers, customers, and employees; the
overall health and price-down focus of Modine's customers; our
ability to successfully execute our strategic and operational
plans, including our ability to successfully exit the automotive
business within the VTS segment; our ability to effectively and
efficiently reduce our cost structure in response to sales volume
declines and complete restructuring activities and realize benefits
thereon; our ability to comply with the financial covenants in our
credit agreements and to fund our global liquidity requirements
efficiently, particularly in light of the significant volatility
and negative impacts to the financial markets resulting from
COVID-19; operational inefficiencies as a result of program
launches, unexpected volume increases, product transfers, and
delays or inefficiencies resulting from restrictions imposed in
response to the COVID-19 pandemic; economic, social and political
conditions, changes and challenges in the markets where Modine
operates and competes, including foreign currency exchange rate
fluctuations, tariffs (and potential trade war impacts resulting
from tariffs or retaliatory actions), inflation, changes in
interest rates or tightening of the credit markets, recession,
restrictions associated with importing and exporting and foreign
ownership, public health crises, and the general uncertainties
about the impact of regulatory and/or policy changes, including
those related to tax and trade, the COVID-19 pandemic and other
matters, that have been or may be implemented in the U.S. or
abroad, and continuing uncertainty regarding the impacts of
"Brexit"; the impact on Modine of any significant increases in
commodity prices, particularly aluminum, copper, steel and
stainless steel (nickel) and other purchased component inventory,
and our ability to adjust product pricing in response to any such
increases; the nature of and Modine's significant exposure to the
vehicular industry and the dependence of this industry on the
health of the economy; the concentration of sales within our CIS
segment attributed to one customer; Modine's ability to recruit and
maintain talent in managerial, leadership, and administrative
functions; Modine's ability to protect its proprietary information
and intellectual property from theft or attack; the impact of any
substantial disruption or material breach of our information
technology systems; costs and other effects of environmental
investigation, remediation or litigation; and other risks and
uncertainties identified by the Company in public filings with the
U.S. Securities and Exchange Commission. Forward-looking
statements are as of the date of this release, and the Company does
not assume any obligation to update any forward-looking
statements.
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/modine-announces-amendment-to-credit-agreements-301062609.html
SOURCE Modine Manufacturing Company