Deutsche Bank, Others Increase Accuride ABL by $25 Million
Accuride Corporation, a supplier of components to the commercial vehicle industry, announced that it has entered into an asset-based loan (ABL) incremental commitment agreement, to which lenders agreed to provide $25 million in aggregate incremental commitments under the company’s existing secured ABL credit agreement dated July 29, 2010. The new agreement materially improves the company’s total liquidity. The agreement increases the company’s ABL by $25 million from $75 million to $100 million.
The syndicate of lenders includes: Deutsche Bank Trust Company Americas and Flagstar Bank, FSB, as incremental lenders, and Deutsche Bank Trust Company Americas, as administrative agent and security agent, Deutsche Bank Trust Company Americas, SunTrust Bank and Wells Fargo Capital Finance, as co-collateral agents, SunTrust Bank and Wells Fargo Capital Finance, as co-documentation agents.
“We are pleased to complete the expansion of our existing ABL agreement, which paves the way for the successful execution of our business plan’s $75 million of planned capital expenditures in 2012,” said Accuride vice president and interim chief financial officer Greg Risch. “These investments will enable us to strengthen product availability and quality at our Gunite business, and increase aluminum wheel production capacity in response to strong industry demand. We anticipate that our revised capital structure will provide us with greater flexibility to serve our customers during the industry upturn that is underway in North America. In addition, we are negotiating new equipment lease agreements that we expect will further enhance liquidity in 2012.”
Previously on abfjournal.com: