WOOD DALE, Ill., Sept. 06, 2024 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the "Company" or "PSI") closed on its new uncommitted senior secured revolving credit agreement (the "Credit Agreement"), with Standard Chartered Bank ("Standard Chartered") and two other lenders. The Credit Agreement allows the Company to borrow up to $120 million at a lower interest rate than previously available and expires on August 30, 2025.
As part of the closing of the Credit Agreement, the Company made an initial draw in the amount of $100 million. The Company utilized the amount drawn under the Credit Agreement (i) to repay the outstanding balance of approximately $40 million under the Company's credit agreement, dated March 22, 2024, by and among the Company and Standard Chartered (the "Existing Credit Agreement"); and (ii) to repay the total outstanding balance of approximately $60 million under the $30M Second Amended and Restated Shareholder's Loan Agreement, dated as of March 22, 2024 between PSI and its majority shareholder, Weichai America Corp. ("Weichai"), and the $25M Third Amended and Restated Shareholder's Loan Agreement, dated as of May 20, 2024 between PSI and Weichai, the $50M Second Amended and Restated Shareholder's Loan Agreement, dated as of November 29, 2023 between PSI and Weichai (all together, the "Existing Shareholder's Loan Agreements").
The Credit Agreement is subject to customary events of default and covenants, including minimum consolidated EBITDA and Consolidated Interest Coverage Ratio covenants for the fourth quarter of 2024 and the first and second quarters of 2025. Borrowings under the Credit Agreement will incur interest at the applicable Secured Overnight Financing Rate ("SOFR") plus 2.00% per annum.
The obligations under the Credit Agreement are unconditionally guaranteed, on a joint and several basis, by certain wholly-owned, existing and subsequently acquired or formed direct and indirect domestic subsidiaries of the Company, subject to customary exceptions. The obligations under the Credit Agreement are secured by substantially all assets of the Company and the Company's wholly-owned subsidiaries.
In connection with the Credit Agreement, on August 30, 2024, the Company also entered into a new shareholder's loan agreement (the "Shareholder's Loan Agreement") with Weichai, which allows the Company to borrow up to $105 million and expires August 31, 2025. The payment of the ...
