Power Solutions International Announces New Credit Agreement with Standard Chartered Bank and New Shareholder Loan Agreement with Weichai America
Power Solutions International (PSI) has secured a new $120 million credit agreement with Standard Chartered Bank and two other lenders, expiring on August 30, 2025. The company made an initial draw of $100 million to repay existing debts. PSI also entered a new $105 million shareholder's loan agreement with Weichai America Corp., expiring August 31, 2025.
The new credit agreement offers a lower interest rate of SOFR plus 2.00% per annum, while the shareholder's loan incurs interest at SOFR plus 4.05% per annum. These agreements are subject to customary covenants and secured by company assets. The refinancing aims to improve PSI's financial flexibility and reduce interest expenses.
Power Solutions International (PSI) ha ottenuto un nuovo accordo di credito da 120 milioni di dollari con Standard Chartered Bank e altri due finanziatori, con scadenza il 30 agosto 2025. L'azienda ha effettuato un prelievo iniziale di 100 milioni di dollari per ripagare debiti esistenti. PSI ha anche stipulato un nuovo accordo di prestito degli azionisti da 105 milioni di dollari con Weichai America Corp., in scadenza il 31 agosto 2025.
Il nuovo accordo di credito offre un tasso d'interesse ridotto di SOFR più 2,00% annuo, mentre il prestito degli azionisti prevede un interesse di SOFR più 4,05% annuo. Questi accordi sono soggetti a convenzioni consuete e garantiti da beni dell'azienda. Il rifinanziamento mira a migliorare la flessibilità finanziaria di PSI e a ridurre le spese per interessi.
Power Solutions International (PSI) ha asegurado un nuevo acuerdo de crédito de 120 millones de dólares con Standard Chartered Bank y otros dos prestamistas, que expira el 30 de agosto de 2025. La compañía realizó un retiro inicial de 100 millones de dólares para pagar deudas existentes. PSI también firmó un nuevo acuerdo de préstamo de accionistas de 105 millones de dólares con Weichai America Corp., que expira el 31 de agosto de 2025.
El nuevo acuerdo de crédito ofrece un tasa de interés más baja de SOFR más 2.00% anual, mientras que el préstamo de accionistas incurre un interés de SOFR más 4.05% anual. Estos acuerdos están sujetos a convenios habituales y asegurados por los activos de la empresa. El refinanciamiento tiene como objetivo mejorar la flexibilidad financiera de PSI y reducir los gastos en intereses.
파워 솔루션스 인터내셔널(PSI)은 스탠다드 차타드 은행 및 두 개의 다른 대출 기관과 함께 1억 2천만 달러의 새로운 신용 계약을 체결하였으며, 이는 2025년 8월 30일에 만료됩니다. 이 회사는 기존 부채를 상환하기 위해 1억 달러를 최초 인출하였습니다. PSI는 또한 Weichai America Corp.와 새로운 1억 5백만 달러의 주주 대출 계약을 체결하였으며, 만료일은 2025년 8월 31일입니다.
새로운 신용 계약은 SOFR 플러스 연 2.00%의 더 낮은 이자율을 제공하며, 주주 대출은 SOFR 플러스 연 4.05%의 이자를 부여합니다. 이러한 계약은 관습적인 약정을 따르며 회사 자산에 담보됩니다. 재융자는 PSI의 재정 유연성을 개선하고 이자 비용을 줄이는 것을 목표로 합니다.
Power Solutions International (PSI) a obtenu un nouvel accord de crédit de 120 millions de dollars avec la Standard Chartered Bank et deux autres prêteurs, expirant le 30 août 2025. L'entreprise a effectué un premier tirage de 100 millions de dollars pour rembourser des dettes existantes. PSI a également conclu un nouvel accord de prêt d'actionnaires de 105 millions de dollars avec Weichai America Corp., expirant le 31 août 2025.
Le nouvel accord de crédit propose un taux d'intérêt réduit de SOFR plus 2,00% par an, tandis que le prêt d'actionnaires entraîne un intérêt de SOFR plus 4,05% par an. Ces accords sont soumis à des conventions habituelles et garantis par des actifs de l'entreprise. Le refinancement vise à améliorer la flexibilité financière de PSI et à réduire les frais d'intérêt.
Power Solutions International (PSI) hat eine neue Kreditvereinbarung über 120 Millionen Dollar mit der Standard Chartered Bank und zwei weiteren Kreditgebern gesichert, die am 30. August 2025 ausläuft. Das Unternehmen nahm eine erste Auszahlung von 100 Millionen Dollar vor, um bestehende Schulden zu begleichen. PSI trat auch in eine neue Aktionärdarlehensvereinbarung über 105 Millionen Dollar mit Weichai America Corp. ein, die am 31. August 2025 ausläuft.
Die neue Kreditvereinbarung bietet einen niedrigeren Zinssatz von SOFR plus 2,00% pro Jahr, während das Aktionärdarlehen einen Zinssatz von SOFR plus 4,05% pro Jahr aufweist. Diese Vereinbarungen unterliegen den üblichen Vereinbarungen und sind durch Unternehmensvermögen gesichert. Die Refinanzierung zielt darauf ab, die finanzielle Flexibilität von PSI zu verbessern und die Zinskosten zu senken.
- Secured a new $120 million credit agreement with lower interest rates
- Repaid approximately $100 million in existing debts
- Obtained a new $105 million shareholder's loan agreement
- Improved financial flexibility with extended loan expiration dates to 2025
- Increased total potential debt from $120 million to $225 million
- New agreements subject to financial covenants, including minimum EBITDA requirements
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
As part of the closing of the Credit Agreement, the Company made an initial draw in the amount of
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
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
The Shareholder’s Loan Agreement is subject to customary events of default and covenants. Borrowings under the Shareholder’s Loan Agreement will incur interest at the applicable “SOFR” plus
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers and end-user customers within the power systems, 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 agnostic strategy to run on a wide variety of fuels, including natural gas, propane, gasoline, diesel and biofuels.
PSI develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, microgrid, and co-generation power (CHP) applications; and industrial applications that include forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. In addition, PSI develops and delivers powertrains purpose-built for medium-duty trucks and buses including school and transit buses, work trucks, terminal tractors, and various other vocational vehicles. For more information on PSI, visit www.psiengines.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the current expectations of the Company about 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, as amended (the “Exchange Act”). These statements may involve risks and uncertainties. These statements often include words such as “anticipate,” “believe,” “budgeted,” “contemplate,” “estimate,” “expect,” “forecast,” “guidance,” “may,” “outlook,” “plan,” “projection,” “should,” “target,” “will,” “would” or similar expressions, but these words are not the exclusive means for identifying such statements. These statements are not guarantees of performance or results, and they involve risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect the Company’s results of operations and liquidity and could cause actual results, performance or achievements to differ materially from those expressed in, or implied by, the Company’s forward-looking statements.
The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, without limitation: the impact of the macro-economic environment in both the U.S. and internationally on our business and expectations regarding growth of the industry; uncertainties arising from global events (including the Russia-Ukraine and Israel-Hamas conflicts), natural disasters or pandemics, and their impact on material prices; the effects of strategic investments on our operations, including our efforts to expand our global market share and actions taken to increase sales growth; the ability to develop and successfully launch new products; labor costs and other employment-related costs; loss of suppliers and disruptions in the supply of raw materials; the Company’s ability to continue as a going concern; the Company’s ability to raise additional capital when needed and its liquidity; uncertainties around the Company’s ability to meet funding conditions under its financing arrangements and access to capital thereunder; the potential acceleration of the maturity at any time of the loans under the Company’s uncommitted senior secured revolving credit facility through the exercise by Standard Chartered Bank of its demand right; the impact of rising interest rates; changes in economic conditions, including inflationary trends in the price of raw materials; our reliance on information technology and the associated risk involving potential security lapses and/or cyber-attacks; the ability of the Company to accurately forecast sales, and the extent to which sales result in recorded revenues; changes in customer demand for the Company’s products; volatility in oil and gas prices; the impact of U.S. tariffs on imports, the impact of supply chain interruptions and raw material shortages, including compliance disruptions such as the UFLPA delaying goods from China; the potential impact of higher warranty costs and the Company’s ability to mitigate such costs; any delays and challenges in recruiting and retaining key employees consistent with the Company’s plans; any negative impacts from delisting of the Company’s common stock par value
The Company’s forward-looking statements are presented 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 statements, whether as a result of new information, future events or otherwise.
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