Power Solutions International, Inc. has closed a new uncommitted senior secured revolving credit agreement with Standard Chartered Bank and other lenders on August 30, 2024. The agreement allows for borrowings up to $120 million and will expire on August 30, 2025. The company drew $100 million initially to repay existing debts including a $40 million balance under a previous credit agreement and $60 million in outstanding balances under shareholder loan agreements with its majority shareholder, Weichai America Corp. The credit agreement includes events of default, minimum EBITDA, and interest coverage covenants, with interest at an alternate base rate or SOFR plus 2.00% per annum.
Additionally, the company entered into a shareholder's loan agreement with Weichai, permitting borrowings up to $105 million expiring on August 31, 2025, subordinated to the new credit agreement. As of September 4, 2024, there is a $35 million outstanding balance with an interest rate of SOFR plus 4.05% annum or Weichai's borrowing cost plus 1%, whichever is higher.
Names: - Power Solutions International, Inc. (Company, PSI) - Standard Chartered Bank (Standard Chartered) - Weichai America Corp. (Weichai) - Xun Li (Chief Financial Officer)