NN, Inc. Announces Amendment to Term Loan
March 04 2022 - 7:00AM
NN, Inc. (NASDAQ: NNBR), a diversified industrial company,
today announced an amendment to its 5.5-year $150 million term loan
with funds managed by Oaktree Capital Management, L.P. (“Oaktree”).
The amendment increases the maximum total leverage ratio covenants
for all quarters of 2022 and 2023.
"We are pleased to complete this amendment with Oaktree, which
allows us to remain focused on our operations and our strategic
initiatives towards transformational growth," said Warren
Veltman, President and Chief Executive Officer of NN. "The
amendment provides us time and flexibility to continue to make the
right long-term decisions for the business as we return to a normal
operating environment. In 2022, we expect the unprecedented impacts
of supply chain disruption for semiconductor chips and other key
inputs as well as inflation that we have experienced in 2021 to
stabilize. These developments, coupled with the pricing actions we
have taken with customers to recover inflation is expected to
result in improved profitability in 2022."
Transaction Highlights:
- Increases quarterly maximum
leverage ratio in a range of 0.25x to 0.75x for 2022 and 2023 as
specified in the amendment
- No change to interest rate
Mike Felcher, NN Senior Vice President and CFO, commented, “We
engaged in proactive discussions with Oaktree to reset our leverage
ratios at levels that provide us adequate flexibility given the
uncertain and challenging macroeconomic conditions our business is
facing. We appreciate Oaktree’s continued support as an investment
partner that understands our business and is committed to our
long-term growth strategy.”
About NN, Inc.
NN, Inc., a diversified industrial company, combines advanced
engineering and production capabilities with in-depth materials
science expertise to design and manufacture high-precision
components and assemblies for a variety of markets on a global
basis. Headquartered in Charlotte, North Carolina, NN has 31
facilities in North America, Europe, South America,
and Asia.
Except for specific historical information, many of the matters
discussed in this press release may express or imply projections of
revenues or expenditures, statements of plans and objectives or
future operations or statements of future economic performance.
These, and similar statements, are forward-looking statements
concerning matters that involve risks, uncertainties and other
factors which may cause the actual performance of NN,
Inc. and its subsidiaries to differ materially from those
expressed or implied by this discussion. All forward-looking
information is provided by the Company pursuant to the safe harbor
established under the Private Securities Litigation Reform Act of
1995 and should be evaluated in the context of these factors.
Forward-looking statements generally will be accompanied by words
such as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“forecast,” “guidance,” “intend,” “may,” “possible,” “potential,”
“predict,” “project” or other similar words, phrases or
expressions. Forward-looking statements involve a number of risks
and uncertainties that are outside of management’s control and that
may cause actual results to be materially different from such
forward-looking statements. Such factors include, among others,
general economic conditions and economic conditions in the
industrial sector; the impacts of the COVID-19 pandemic on the
Company’s financial condition, business operations and liquidity;
competitive influences; risks that current customers will commence
or increase captive production; risks of capacity underutilization;
quality issues; material changes in the costs and availability of
raw materials; currency and other risks associated with
international trade; our dependence on certain major customers,
some of whom are not parties to long-term agreements (and/or are
terminable on short notice); the impact of acquisitions and
divestitures; the level of our indebtedness; the restrictions
contained in our debt agreements; our ability to obtain financing
at favorable rates, if at all, and to refinance existing debt as it
matures; unanticipated difficulties integrating acquisitions; new
laws and governmental regulations; the impact of climate change on
our operations; cyber liability or potential liability for breaches
of our or our service providers’ information technology systems or
business operations disruptions.
For additional information concerning such risk factors and
cautionary statements, please see the section titled "Risk Factors"
in the Company's periodic reports filed with the Securities
and Exchange Commission, including, but not limited to, the
Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2020, the Company's Quarterly Report on
Form 10-Q for the three months ended September 30, 2021, and,
when filed, the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2021. Except as required by law, we
undertake no obligation to update or revise any forward-looking
statements we make in our press releases, whether as a result of
new information, future events or otherwise.
FOR FURTHER INFORMATION:
Jeff Tryka, CFAInvestor Relations
Contactjtryka@lambert.com616-295-2509
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