Helios Technologies Upsizes Credit Facilities to $900M
October 30 2020 - 4:05PM
Business Wire
Helios Technologies (Nasdaq: HLIO) (“Helios” or the “Company”),
a global industrial technology leader that develops and
manufactures solutions for both the hydraulics and electronics
markets, today announced that effective October 28, 2020 the
Company has entered into a $900 million senior secured credit
agreement, which is inclusive of a $300 million accordion
feature.
Helios’s senior secured credit agreement was provided by a
syndicate led by PNC Bank. The five-year agreement amends the
Company’s previous credit agreement and consists of a $400 million
revolving credit facility, a $200 million term loan and, subject to
new or existing lenders agreeing to participate in the increase and
other customary conditions, a $300 million accordion feature. These
credit facilities provide Helios with a significant increase in its
borrowing capacity with an improved structure and attractive
interest rate options.
Helios plans to use the proceeds of the credit agreement for
repayment of its existing credit facilities, for working capital
purposes, to finance acquisitions such as the recently announced
purchase (the “Acquisition”) of BWG Holdings I Corp. (operating as
Balboa Water Group or “Balboa”), based in Costa Mesa, CA, and for
general corporate purposes.
“The establishment of these credit facilities not only
represents a strong vote of confidence from the financial
community, it importantly supports our short- and long-term growth
objectives as we execute against our Vision 2025 strategy,”
commented Josef Matosevic, the Company’s President and Chief
Executive Officer.
“We appreciate the participation of new and existing banks and
believe this is a clear indication of their confidence in our
business model, disciplined operating philosophy and growth
opportunities,” stated Tricia Fulton, Helios’s Chief Financial
Officer. “The establishment of these credit facilities not only
provides us with the funding to close on the Balboa acquisition,
they also offer us liquidity to support our growth plans. We have
very strong cash generation capabilities and a proven history of
repaying outstanding debt in a disciplined and efficient manner,
maintaining our financial strength.”
About Helios Technologies
Helios Technologies is a global industrial technology leader
that develops and manufactures hydraulic and electronic control
solutions for diverse markets. The Company operates in two business
segments, Hydraulics and Electronics. The Hydraulics segment
markets and sells products globally under the brands of Sun
Hydraulics for its cartridge valve technology, Custom Fluid Power
for its hydraulic system design and Faster which provides quick
release coupling solutions. Global Electronics brands include
Enovation Controls and Murphy for fully-tailored solutions with a
broad range of rugged and reliable instruments such as displays,
controls and instrumentation products. Helios Technologies and
information about its associated companies is available online at
www.heliostechnologies.com.
Forward Looking Information
This news release contains “forward‐looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934.
Forward‐looking statements involve risks and uncertainties, and
actual results may differ materially from those expressed or
implied by such statements. They include statements regarding
current expectations, estimates, forecasts, projections, our
beliefs, management’s plans, projections and objectives for future
operations, scale and performance, integration plans and expected
synergies therefrom, the timing of completion of the proposed
transaction, and assumptions made by Helios Technologies, Inc.
(“Helios” or the “Company”), its directors or its officers about
the Company and the industry in which it operates, and assumptions
made by management, and include among other items, (i) the
Company’s strategies regarding growth, including the expected
benefits of the Acquisition; (ii) the timing of completion of the
Acquisition; (iii) Company’s financing plans with respective to the
funding of the Acquisition; and; (iv) objectives for future
operations, integration plans and expected synergies. Words such as
“may,” “expects,” “projects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” variations of such words, and
similar expressions are intended to identify such forward-looking
statements. Similarly, statements that describe our future plans,
objectives or goals also are forward-looking statements. These
statements are not guaranteeing future performance and are subject
to a number of risks and uncertainties. Our actual results may
differ materially from what is expressed or forecasted in such
forward-looking statements, and undue reliance should not be placed
on such statements. All forward-looking statements are made as of
the date hereof, and we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Factors that could cause the actual results to differ materially
from what is expressed or forecasted in such forward‐looking
statements include, but are not limited to, failure to promptly and
effectively integrate the Acquisition; objectives for future
operations, integration plans and expected synergies; the ability
to recognize the anticipated benefits of the Acquisition, which may
be affected by, among other things, competition, and the ability of
the combined business to grow and manage growth profitably; failure
to promptly and effectively integrate the Acquisition; risks
related to disruption of management time from ongoing business
operations due to the Acquisition; and the ability of Helios to
retain and hire key personnel, and maintain relationships with
suppliers. Further information relating to factors that could cause
actual results to differ from those anticipated is included but not
limited to information under the heading Item 1. “Business” and
Item 1A. “Risk Factors” in the Company’s Form 10-K for the year
ended December 28, 2019 and Part II, Item IA, “Risk Factors” in the
Company’s Form 10-Q for the quarter ended March 28, 2020 and other
filings with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20201030005597/en/
Tania Almond Vice President, Investor Relations & Corporate
Communications (941) 362-1333 tania.almond@HLIO.com
Deborah Pawlowski Kei Advisors LLC (716) 843-3908
dpawlowski@keiadvisors.com
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