ASV Holdings, Inc. Announces New $50 Million Credit Facility
January 02 2018 - 9:01AM
Business Wire
Reduces Debt Servicing Costs and Provides
More Favorable Terms
ASV Holdings, Inc. (NASDAQ: ASV), a leading provider of
rubber-tracked compact track loaders and wheeled skid steer loaders
in the compact construction equipment market, today announced that
on December 27, 2017, it replaced its former credit agreement with
a new $50 million, five-year credit facility with PNC Bank as the
lead lender. The new agreement consists of a $35 million revolving
credit facility and a $15 million term loan, and provides for a
significant reduction in annual interest costs and generally more
favorable credit terms for ASV. The full details of this agreement
can be found in the Current Report on Form 8-K filed by ASV on
December 28 with the SEC, accessible both at www.sec.gov and at
www.asvi.com in the investor relations section.
Missi How, CFO of ASV commented, “Reducing our interest expense
through the negotiation of lower rates with our banks marks another
key milestone for our team here at ASV. Our financial performance
and execution of our plan throughout 2017 enabled us to reduce our
cost of capital and has put us in position to continue to prudently
grow the enterprise. This new agreement lowers the weighted
effective interest rate on our debt by approximately 3 percentage
points to approximately 5.1%. We expect that the new lower rate
will result in an annual savings of nearly $800,000 in interest,
with a corresponding amount reflected in our net income, on an
annual basis, for 2018.”
The company expects to incur a charge in the fourth quarter of
about $900,000 which reflects the remaining unamortized balance of
costs associated with the previous credit facility, and a
prepayment penalty at closing against the old credit facility.
Principal payments of $500,000 against the Term Loan portion of the
facility will be due each quarter.
Forward-Looking Statements
This press release contains forward-looking statements. In some
cases, you can identify forward-looking statements by terminology
such as “may,” “should,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential,” “intends” or
“continue,” and other similar expressions that are predictions of
or indicate future events and future trends. Any forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including the risks detailed
under “Risk Factors” in the Registration Statement on Form S-1 (SEC
File No. 333-222142) and in other filings we make from time to time
with the Securities and Exchange Commission, and represent our
views only as of the date they are made and should not be relied
upon as representing our views as of any subsequent date. We do not
assume any obligation to update any forward-looking statements.
About ASV Holdings, Inc.
ASV Holdings, Inc. is a designer and manufacturer of compact
construction equipment. Its patented Posi-Track rubber tracked,
multi-level suspension undercarriage system provides a competitive
market differentiator for its Compact Track Loader (CTL) product
line with brand attributes of power, performance and
serviceability. It’s wheeled Skid Steer Loaders (SSLs) also share
the common brand attributes. Equipment is sold through an
independent dealer network throughout North America, Australia, and
New Zealand. The company also sells OEM equipment and aftermarket
parts. ASV owns and operates a 238,000 square-foot production
facility in Grand Rapids, MN.
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version on businesswire.com: http://www.businesswire.com/news/home/20180102005186/en/
Investor Contacts:At Darrow Associates, Inc.Peter
Seltzberg, 516-419-9915Managing Director, Investor
Relationspseltzberg@darrowir.comorAt ASV Holdings, Inc.Andrew
Rooke, 218-327-5389Chief Executive OfficerAndrew.rooke@asvi.com
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