Motorcar Parts of America Announces Extension of Credit Facility

Rhea-AI Summary

Motorcar Parts of America (Nasdaq: MPAA) announced the extension of its loan agreement maturity date with PNC Bank to May 2026. This comes with amendments that enhance the company’s liquidity, maintaining a total credit facility of approximately $269 million. CEO Selwyn Joffe expressed gratitude for PNC Bank’s support and highlighted the strategic benefits expected from their investments. This credit facility consists of a $238.62 million revolver and a $30 million term loan facility.

Positive

• Loan agreement maturity extended to May 2026, improving liquidity.
• Total credit facility remains robust at approximately $269 million.

Negative

• None.

Motorcar Parts of America, Inc. (Nasdaq: MPAA) today announced it has extended the maturity date of the loan agreement of the company’s existing credit facility led by PNC Bank, N.A. to May 2026 – including amendments which further enhance the company’s strong liquidity base. The credit facility amount remains unchanged, with an aggregate facility of approximately $269 million – consisting of a $238.62 million revolver and a $30 million term loan facility.

“The extension and related amendments recognize the company’s strategic milestones and the further benefits we expect to realize from our investments. We are gratified by the ongoing support of PNC Bank and the loan syndicate, and look forward to a continued strong working relationship,” said Selwyn Joffe, chairman, president and chief executive officer.

Additional details concerning the amended credit facility agreement are available in a related Form 8-K filing.

About Motorcar Parts of America, Inc.

Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at www.motorcarparts.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company’s Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2020 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210602005118/en/

FAQ

What is the new maturity date for Motorcar Parts of America's loan agreement?

The new maturity date is May 2026.

How much is Motorcar Parts of America's total credit facility?

The total credit facility is approximately $269 million.

Who is the lender for Motorcar Parts of America's credit facility?

The lender is PNC Bank.

What are the components of Motorcar Parts of America's credit facility?

It consists of a $238.62 million revolver and a $30 million term loan.

What are the expected benefits from the loan amendment for Motorcar Parts of America?

The amendments are expected to enhance the company's liquidity and support strategic milestones.