Standard Motor Products, Inc. Announces New $750 Million Credit Facility
Standard Motor Products (NYSE: SMP) has secured a new $750 million credit facility with JPMorgan Chase Bank and a syndicate of lenders. The five-year facility includes $310 million in term loans and a $440 million revolving credit facility, allowing for multi-currency borrowing. SMP plans to use interest rate swaps to fix rates on about $200 million of borrowings. The facility will finance the acquisition of Nissens Automotive by year-end and support SMP's growth and shareholder return initiatives. It replaces the existing facility and will mature in September 2029. Proceeds will also repay outstanding borrowings, cover fees, and fund general corporate purposes.
Standard Motor Products (NYSE: SMP) ha ottenuto una nuova linea di credito da 750 milioni di dollari con JPMorgan Chase Bank e un sindacato di prestatori. La linea di credito di cinque anni include 310 milioni di dollari in prestiti a termine e una linea di credito revolving da 440 milioni di dollari, che consente prestiti in più valute. SMP prevede di utilizzare swap sui tassi d'interesse per fissare i tassi su circa 200 milioni di dollari di prestiti. La linea di credito finanzierà l'acquisizione di Nissens Automotive entro la fine dell'anno e sosterrà la crescita di SMP e le iniziative di ritorno per gli azionisti. Sostituisce la linea di credito esistente e scadrà a settembre 2029. I proventi saranno utilizzati anche per rimborsare prestiti in essere, coprire le spese e finanziare finalità aziendali generali.
Standard Motor Products (NYSE: SMP) ha asegurado una nueva línea de crédito de 750 millones de dólares con JPMorgan Chase Bank y un sindicato de prestamistas. La línea de crédito a cinco años incluye 310 millones de dólares en préstamos a plazo y una línea de crédito revolving de 440 millones de dólares, lo que permite préstamos en múltiples divisas. SMP planea utilizar swaps de tasas de interés para fijar tasas en aproximadamente 200 millones de dólares de préstamos. La línea de crédito financiará la adquisición de Nissens Automotive para fin de año y apoyará el crecimiento de SMP y las iniciativas de retorno para los accionistas. Reemplaza la línea de crédito existente y vencerá en septiembre de 2029. Los ingresos también se utilizarán para pagar préstamos pendientes, cubrir tarifas y financiar fines corporativos generales.
스탠다드 모터 제품(Standard Motor Products)(NYSE: SMP)은 JPMorgan Chase Bank와 대출 조합을 통해 새로운 7억 5천만 달러의 신용 시설을 확보했습니다. 5년 만기의 이 시설은 3억 1천만 달러의 기간대출과 4억 4천만 달러의 회전 신용 시설을 포함하며, 다통화 차입이 가능합니다. SMP는 약 2억 달러의 차입금에 대한 금리를 고정하기 위해 금리 스왑을 사용할 계획입니다. 이 시설은 Nissens Automotive의 인수를 위한 자금을 조달하고 SMP의 성장 및 주주 수익 이니셔티브를 지원할 것입니다. 기존 시설을 대체하며 2029년 9월에 만료됩니다. 수익금은 미상환 차입금을 상환하고 비용을 충당하며 일반 기업 목적을 위해 사용될 것입니다.
Standard Motor Products (NYSE: SMP) a obtenu une nouvelle facilité de crédit de 750 millions de dollars auprès de JPMorgan Chase Bank et d'un syndicat de prêteurs. La facilité d'une durée de cinq ans comprend 310 millions de dollars en prêts à terme et une facilité de crédit revolving de 440 millions de dollars, permettant des emprunts en plusieurs devises. SMP prévoit d'utiliser des swaps de taux d'intérêt pour fixer les taux sur environ 200 millions de dollars d'emprunts. La facilité financera l'acquisition de Nissens Automotive d'ici la fin de l'année et soutiendra la croissance de SMP ainsi que ses initiatives de retour aux actionnaires. Elle remplace la facilité existante et arrivera à échéance en septembre 2029. Les produits seront également utilisés pour rembourser des emprunts en cours, couvrir des frais et financer des fins générales d'entreprise.
Standard Motor Products (NYSE: SMP) hat eine neue Kreditfazilität in Höhe von 750 Millionen US-Dollar bei JPMorgan Chase Bank und einem Konsortium von Kreditgebern gesichert. Die fünfjährige Fazilität umfasst 310 Millionen US-Dollar in Terminkrediten und eine revolving Kreditfazilität in Höhe von 440 Millionen US-Dollar, die mehrwährungsfähige Darlehen ermöglicht. SMP plant, Zinsswaps zu nutzen, um die Zinsen auf etwa 200 Millionen US-Dollar der Darlehen zu fixieren. Die Fazilität wird die Übernahme von Nissens Automotive finanzieren und SMPs Wachstums- und Aktionärsrenditeinitiativen unterstützen, und ersetzt die bestehende Fazilität, die im September 2029 fällig wird. Die Erlöse werden auch zur Rückzahlung ausstehender Darlehen, zur Deckung von Gebühren und zur Finanzierung allgemeiner Unternehmenszwecke verwendet.
- Secured a large $750 million credit facility, enhancing financial flexibility
- New facility supports the acquisition of Nissens Automotive, potentially expanding SMP's market presence
- Long-term agreement extending to September 2029, providing stable financing
- Interest rate swaps planned for $200 million, potentially reducing interest rate risk
- Multi-currency borrowing option offers international financial flexibility
- Increased debt load with $310 million in term loans
- Potential interest rate risk on unhedged portion of borrowings
- Acquisition-related expenses and fees may impact short-term financial performance
Insights
Standard Motor Products' new
This facility is important for funding the Nissens Automotive acquisition and refinancing existing debt. It extends the debt maturity to 2029, improving the company's long-term financial stability. The increased facility size suggests confidence from lenders in SMP's business model and growth prospects. However, investors should monitor the impact on leverage ratios and interest expenses, as these could affect profitability in the near term.
This credit facility announcement signals SMP's aggressive growth strategy in the automotive aftermarket. The Nissens Automotive acquisition, coupled with this substantial credit line, positions SMP to expand its market share and product portfolio. The automotive parts industry is experiencing consolidation and this move allows SMP to be a key player in this trend.
Investors should consider the potential synergies from the Nissens acquisition and how it might impact SMP's competitive position, especially in the European market. The increased financial capacity could also support future M&A activities, R&D investments, or shareholder returns. However, it's important to assess the integration risks and the impact on SMP's financial metrics post-acquisition.
Mr. Nathan Iles, Standard Motor Products' Chief Financial Officer, stated, "We are pleased to get this long-term agreement in place. This credit facility will not only provide the financing we need to complete the acquisition of Nissens Automotive by year-end, but also gives us additional flexibility to continue to execute on our capital allocation priorities of investing for growth and providing shareholder returns. We thank JP Morgan and all our banking partners for their support in helping SMP continue to grow."
The Credit Facility replaces our existing facility and will mature in September 2029. Proceeds will be used to fund the acquisition of Nissens Automotive and repay all outstanding borrowings under the Company's existing credit facility. It will also be used to pay certain fees and expenses that were incurred in connection with the Credit Facility, and for other general corporate purposes. For more information on our acquisition of Nissens Automotive, please see our press release from July 10, 2024 on our website at SMP & Nissens Automotive.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that any forward-looking statements made by the company, including those that may be made in this press release, are based on management's expectations at the time they are made, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward looking statements. Among the factors that could cause actual results, events or performance to differ materially from those risks and uncertainties discussed in this press release are those detailed from time-to-time in prior press releases and in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. By making these forward-looking statements, Standard Motor Products undertakes no obligation or intention to update these statements after the date of this release.
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SOURCE Standard Motor Products, Inc.
FAQ
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