Power Solutions International announces a credit extension
WOOD DALE, Ill., March 26, 2021 (GLOBE NEWSWIRE) – Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of Emissions – Certified Engines and Power Systems, today announced that it has entered into a $ 130 million uncommitted senior secured revolving credit facility under this certain Amended and Restated Uncommitted Revolving Credit Agreement dated March 26, 2021 (the “Amended Credit Agreement”), between the Company and Standard Chartered Bank (“Standard Chartered”).
Among other things, the amended credit agreement extends the maturity date of the loans hereunder to no earlier than March 25, 2022 or at the request of Standard Chartered and includes minimum consolidated EBITDA and ratio covenants. of consolidated interest coverage for the second, third and fourth quarters of 2021. In addition, borrowings under the amended credit agreement will bear interest at LIBOR + 2.70% per annum. The amended credit agreement is fully drawn on March 26, 2021.
As part of the execution of the amended credit agreement, the company also entered into an amendment and restatement of the shareholder loan agreement initially signed with its majority shareholder, Weichai America Corp. in December 2020 (the “first agreement modified and updated shareholder loan ”.). The Amended and Restated First Shareholder Loan Agreement provides the Company with access to credit of up to $ 130 million for the sole purpose of repaying outstanding borrowings under the Amended Credit Agreement. The first amended and restated shareholder loan agreement expires on April 25, 2022.
Additional details on the Amended Credit Agreement and the Amended and Restated First Shareholder Loan Agreement can be found in the company’s current report on Form 8-K filed with the Securities and Exchange Commission on March 26, 2021. .
Lance Arnett, Managing Director, said: “We appreciate Standard Chartered’s continued support to PSI. With this agreement in place, we look forward to achieving our business goals in 2021. We will also continue to work in tandem with our strategic partner and majority shareholder, Weichai, to explore longer-term financing options with current or future lenders. ‘others during the year. . ”
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a wide range of advanced and emission certified engines and power systems. PSI provides integrated turnkey solutions to the world’s leading original equipment manufacturers and end customers in the energy, industrial and transportation end markets. The company’s unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel-independent strategy to operate on a wide variety of fuels, including gas. natural, propane, gasoline, diesel and biofuels.
PSI develops and supplies complete power systems that are used worldwide in stationary and mobile power generation applications supporting uninterrupted, industry-leading, demand response, demand response, power generation applications. micro-grid and cogeneration (CHP); and industrial applications which include forklifts, agriculture and turf, arbor maintenance, industrial sweepers, aerial work platforms, irrigation pumps, ground support and construction equipment. In addition, PSI develops and supplies powertrains specially designed for medium-duty trucks and buses, including school and transit buses, work trucks, terminal tractors and various other professional vehicles. For more information on PSI, visit www.psiengines.com.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations with respect to its prospects and opportunities. These forward-looking statements are entitled to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The company has attempted to identify these forward-looking statements by using words such as “anticipate,” “believe,” “budget,” “Consider”, “estimate”, “expect”, “forecast”, “guide”, “can”, “outlook”, “plan”, “projection”, “should”, “target”, “will”, “Would”, or similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to a number of risks, uncertainties and assumptions which may cause the statements to be made. actual results, performance or achievements are significantly different from those expressed or implied by these statements.
The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to: the impact of the ongoing COVID-19 pandemic could have on the business and financial results of the company; the company’s ability to continue to operate; the company’s ability to raise additional capital when needed and its liquidity; uncertainties surrounding the Company’s ability to meet the financing conditions under its financing agreements and access to capital thereunder; the timing of the completion of steps to correct and the inability to address and remedy material weaknesses; identification of additional material weaknesses or significant deficiencies; risks associated with complying with the terms and conditions of regulations with the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Northern District of Illinois (the “USAO”); variances in non-recurring expenses; risks associated with significant costs and the distraction of staff attention and resources deployed to deal with internal control matters; the Company’s obligations to indemnify past and present directors and officers and certain current and former employees with respect to investigations conducted by the SEC and the Criminal Division of the USAO, which will be funded by the Company with its resources from existing cash flow due to the exhaustion of the insurance coverage of its main directors and historical officers; the company’s ability to accurately forecast sales and the extent to which sales translate into recorded revenue; changes in customer demand for the Company’s products; the volatility of oil and gas prices; the impact of US tariffs on imports from China on the Company’s supply chain; any delay and difficulty in recruiting key employees in accordance with company plans; any negative impact of delisting the Company’s common stock from the NASDAQ Stock Exchange and any delays and difficulties in obtaining a re-listing on the stock exchange; and the risks and uncertainties described in the reports filed by the company with the SEC, including, without limitation, its annual report on Form 10-K for the year ended December 31, 2019 and subsequent filings of the company with the SEC.
The Company’s forward-looking statements are made as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statement, whether as a result of new information, future events or otherwise.
Power Solutions International, Inc.
Director of Investor Relations
+1 (630) 451-5402