AirBoss Announces New Credit Facilities and Update On Strategic Transition
AirBoss of America has secured new senior credit facilities totaling up to US$180 million, replacing its current senior secured revolving credit facilities. The new arrangement includes an asset-based credit facility expected to reach US$125 million (currently US$100 million) and a US$55 million term loan facility, both maturing on November 29, 2027. Key terms include reduced maximum margin on revolving debt from 450 to 225 basis points, conditional dividend increases, and specific EBITDA requirements. The company continues its strategic review, exploring potential divestitures and real estate asset monetization, though no immediate transactions are expected.
AirBoss of America ha ottenuto nuove linee di credito senior per un totale di 180 milioni di dollari USA, sostituendo le attuali linee di credito revolving garantite. Il nuovo accordo include una linea di credito basata sugli attivi, che si prevede raggiunga 125 milioni di dollari USA (attualmente 100 milioni di dollari USA), e un prestito a termine di 55 milioni di dollari USA, entrambi in scadenza il 29 novembre 2027. I termini chiave includono un margine massimo ridotto sul debito revolving da 450 a 225 punti base, aumenti di dividendi condizionali e requisiti specifici di EBITDA. L'azienda continua la sua revisione strategica, esplorando potenziali disinvestimenti e monetizzazione degli attivi immobiliari, anche se non sono attese transazioni immediate.
AirBoss of America ha asegurado nuevas líneas de crédito senior por un total de 180 millones de dólares estadounidenses, reemplazando sus actuales líneas de crédito rotativo garantizadas. El nuevo acuerdo incluye una línea de crédito basada en activos que se espera alcance 125 millones de dólares estadounidenses (actualmente 100 millones de dólares) y un préstamo a plazo de 55 millones de dólares estadounidenses, ambos con vencimiento el 29 de noviembre de 2027. Los términos clave incluyen un margen máximo reducido sobre la deuda rotativa de 450 a 225 puntos básicos, aumentos de dividendos condicionados y requisitos específicos de EBITDA. La empresa continúa su revisión estratégica, explorando posibles desinversiones y monetización de activos inmobiliarios, aunque no se esperan transacciones inmediatas.
AirBoss of America는 현재의 담보가 설정된 회전 신용 시설을 대체하여 총 1억 8천만 달러에 달하는 새로운 선급 신용 시설을 확보했습니다. 새로운 Arrangement에는 현재 1억 달러인 자산 기반 신용 시설과 5천5백만 달러의 만기일이 2027년 11월 29일인 정기 대출 시설이 포함되어 있습니다. 주요 조건에는 회전 자산에 대한 최대 마진이 450에서 225 기본점으로 감소되고, 조건부 배당금 증가 및 특정 EBITDA 요건이 포함됩니다. 이 회사는 전략적 검토를 지속하며 잠재적인 자산 매각 및 부동산 자산의 자산화 탐색을 하고 있으나 즉각적인 거래는 예상되지 않습니다.
AirBoss of America a sécurisé de nouvelles facilités de crédit senior d'un montant total pouvant atteindre 180 millions de dollars américains, remplaçant ainsi ses facilités de crédit revolving sécurisées actuelles. La nouvelle arrangement comprend une facilité de crédit basée sur des actifs qui devrait atteindre 125 millions de dollars américains (actuellement 100 millions de dollars) et un prêt à terme de 55 millions de dollars américains, les deux arrivant à échéance le 29 novembre 2027. Les conditions clés comprennent une marge maximale réduite sur la dette revolving, passant de 450 à 225 points de base, des augmentations de dividendes conditionnelles et des exigences spécifiques en matière d'EBITDA. L'entreprise poursuit son examen stratégique, explorant des désinvestissements potentiels et la monétisation d'actifs immobiliers, bien qu'aucune transaction immédiate ne soit attendue.
AirBoss of America hat neue Senior-Kreditlinien in Höhe von bis zu 180 Millionen US-Dollar gesichert, die die derzeitigen senior gesicherten revolvierenden Kreditlinien ersetzen. Die neue Vereinbarung umfasst eine auf Vermögenswerte basierende Kreditlinie, die voraussichtlich 125 Millionen US-Dollar (derzeit 100 Millionen US-Dollar) erreichen wird, sowie eine 55 Millionen US-Dollar Terminkreditlinie, die beide am 29. November 2027 fällig werden. Zu den wichtigsten Bedingungen gehören eine reduzierte maximale Marge auf revolvierende Schulden von 450 auf 225 Basispunkte, bedingte Dividendenerhöhungen und spezifische EBITDA-Anforderungen. Das Unternehmen überprüft weiterhin seine Strategien und erkundet potenzielle Veräußerungen und die Monetarisierung von Immobilienvermögen, obwohl aktuell keine sofortigen Transaktionen erwartet werden.
- Secured new credit facilities totaling US$180 million through 2027
- Reduced maximum applicable margin on revolving debt from 450 to 225 basis points
- Increased financial flexibility for strategic transition execution
- New dividend restrictions subject to financial conditions
- Additional covenants on EBITDA, liquidity, and capital expenditures
- No immediate strategic transactions expected from ongoing review
NEWMARKET, Ontario, Dec. 02, 2024 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX:ABSSF) (the “Company” or “AirBoss”) today announced that it has entered into new senior secured credit facilities consisting of aggregate financing of up to US
Credit Facilities
The new credit facilities consist of a revolving asset-based credit facility co-arranged by The Toronto-Dominion Bank and Canadian Imperial Bank of Commerce (the “ABL Facility”) and a non-revolving term loan facility provided by Great Rock Capital Partners, LLC (the “Term Facility”). The commitments under the ABL Facility, when fully syndicated, are expected to be US
- Reducing the maximum applicable margin on revolving debt from 450 basis points to 225 basis points;
- Dividend increases above current levels are subject to certain financial conditions;
- Meeting certain minimum adjusted EBITDA and liquidity requirements; and
- Covenants related to annual capital expenditures.
“The new credit facilities will provide AirBoss with the financial flexibility it requires to continue executing our strategic transition,” said Chris Bitsakakis, President and Co-CEO of AirBoss. “We are excited to work with our new team of financing partners, as we continue our goal of transforming AirBoss into a global market leader in the custom rubber compounding market and the industries which we serve. We believe the new credit facilities are in the best interests of our shareholders and other stakeholders as they will enable us to continue focusing on long-term growth and creating sustainable value.”
Update on Strategic Transition
The Company continues to work diligently on its strategic review, evaluating a range of potential opportunities to enhance shareholder value. While no specific transactions are imminent or expected to occur in the near-term, AirBoss continues to explore potential strategic divestitures as well as the potential monetization of its real estate assets. There can be no assurance that this ongoing evaluation of strategic opportunities will result in the successful completion of any transaction, nor any assurance as to the timing or nature of any outcomes.
About AirBoss
AirBoss of America is a diversified developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through two divisions. AirBoss Rubber Solutions is a North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Manufactured Products is a supplier of anti-vibration and rubber-molded solutions to the North American automotive market and other sectors, and also a global supplier of personal and respiratory protective equipment and technology for the defense, healthcare, medical and first responder communities, through its AirBoss Defense operations. The Company’s shares trade on the TSX under the symbol BOS and on the OTCQX under the symbol ABSSF. Visit www.airboss.com for more information.
AIRBOSS FORWARD LOOKING INFORMATION DISCLAIMER
Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or AirBoss’ future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends”, “should” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions, notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; AirBoss’ ability to successfully develop and execute effective business strategies including, without limitation, the recently announced strategic transition; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws; current and future litigation; ability to obtain financing, including syndicate commitments, on acceptable terms, and ability to satisfy the covenants set forth in such financing arrangements, including the ABL Facility and the Term Facility; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information. All subsequent written and oral forward-looking information attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this Interim Report and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly the forward-looking information except as required by applicable laws. Risks and uncertainties about AirBoss’ business are more fully discussed under the heading “Risk Factors” in our most recent Annual Information Form and are otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.com.
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