Superior Industries Announces Refinancing

Rhea-AI Summary

Superior Industries International (NYSE:SUP) has successfully refinanced its Term Loan and Revolving Credit Facilities. A new $400 million Senior Secured Term Loan, maturing on December 15, 2028, was provided by Oaktree Capital Management. Additionally, a $60 million Revolving Credit Facility, with an option to increase to $110 million, matures on December 15, 2027.

The refinancing reflects the company’s strong financial performance and long-term growth potential, enhancing its ability to drive shareholder value.

Positive

• Successful refinancing of $400 million Senior Secured Term Loan enhances financial stability.
• Partnership with Oaktree Capital Management provides new capital for growth.
• Company's focus on profitable growth supported by strong financial performance.

Negative

• None.

Company’s strong financial performance and long-term earnings power attracts new capital

SOUTHFIELD, Mich.--(BUSINESS WIRE)-- Superior Industries International, Inc. (“Superior”) (NYSE:SUP), one of the world’s leading light vehicle aluminum wheel suppliers for OEMs and the European aftermarket, today announced the refinancing of its Term Loan and Revolving Credit Facilities.

Funds managed by Oaktree Capital Management, L.P. (“Oaktree”) provided the capital for a new $400 million Senior Secured Term Loan maturing December 15, 2028.

J.P. Morgan Chase Bank is Agent for a new $60 million Revolving Credit Facility maturing on December 15, 2027. The new Revolving Credit Facility includes the ability for the Company, at its option, to obtain additional commitments to upsize the facility to $110 million.

"Superior remains well-positioned to drive profitable growth, and this refinancing is a testament to our recent financial performance and long-term earnings power of our business. We are excited about our new partnership with Oaktree and are pleased to have extended our existing relationship with J.P. Morgan,” commented Majdi Abulaban, President and Chief Executive Officer. “As we look forward, we remain laser-focused on extending our momentum and advancing our growth strategy to drive shareholder value.”

“We are excited to partner with Superior. With its low-cost manufacturing footprint, broad portfolio of premium wheel finishes and talented global workforce, Superior is the best-in-class supplier of premium wheels to the North American and European automotive markets. As the global automotive market recovers, we believe Superior is poised to expand its product offering and gain wallet-share with new and existing customers,” said Robert LaRoche, Senior Vice President of Oaktree.

Lazard served as financial advisor to Superior.

About Superior Industries

Superior is one of the world’s leading aluminum wheel suppliers. Superior’s team collaborates with customers to design, engineer, and manufacture a wide variety of innovative and high-quality products utilizing the latest light weighting and finishing technologies. Superior also maintains leading aftermarket brands ATS^®, RIAL^®, ALUTEC^®, and ANZIO^®. Headquartered in Southfield, Michigan, Superior is listed on the New York Stock Exchange. For more information, please visit www.supind.com.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $163 billion in assets under management as of September 30, 2022. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 20 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221219005141/en/

Investor and Media Inquiries

Superior Investor Relations

(248) 234-7104

Investor.Relations@supind.com

Source: Superior Industries International, Inc.

FAQ

What is the significance of the refinancing announcement by Superior Industries (SUP)?

The refinancing enhances Superior Industries' financial stability and provides capital for growth, reflecting strong financial performance.

How much capital did Oaktree provide to Superior Industries (SUP)?

Oaktree Capital Management provided $400 million in the form of a new Senior Secured Term Loan.

What is the maturity date of the new Revolving Credit Facility for Superior Industries (SUP)?

The new $60 million Revolving Credit Facility matures on December 15, 2027.

What are the key benefits of the new partnership with Oaktree for Superior Industries (SUP)?

The partnership provides additional capital for growth and reinforces Superior's market position as a leading aluminum wheel supplier.

What is the maturity date of the new Senior Secured Term Loan for Superior Industries (SUP)?

The new $400 million Senior Secured Term Loan matures on December 15, 2028.