Daily News: January 9, 2017

HPS Agents TPI Composites’ Term Loan Refinancing


TPI Composites, a U.S.-based independent manufacturer of composite wind blades, entered into an amended and restated financing agreement with HPS Investment Partners and Capital One.

The agreement consists of a four-year term loan facility for an aggregate principal amount of $75 million and a four-year $25 million revolving credit facility, inclusive of a $15 million letter of credit sub-facility.

According to a related filing, HPS Investment Partners served as administrative agent and collateral agent. Capital One was revolving loan representative and a member of the lender group.

The agreement amends and restates in its entirety the company’s existing $100 million term loan credit facility that was scheduled to mature on August 19, 2018 and reduces the interest rate on the previous term loan credit facility by 225 basis points.

“We are pleased to have completed this refinancing by the end of 2016 setting us up with a more flexible and cost-effective capital structure entering 2017. The new loan facility features a reduced borrowing rate, the flexibility of a revolver component with letter of credit capacity to free up approximately $10 million of currently restricted cash as well as a reduced number of covenants and a more favorable covenant structure. This increased flexibility and improvement in our capital structure positions us well to continue to capitalize on the strong wind industry growth and ongoing outsourcing trends,” said Bill Siwek, TPI’s chief financial officer.

The borrowings under the agreement bear interest at a variable rate of LIBOR plus an applicable margin of 5.75%, provided that in no event will the base LIBOR rate be less than 1.00%. Principal payments on the term loan are payable in equal quarterly installments of $937,500 commencing on March 31, 2017, with the outstanding balance of all borrowings to be repaid on December 30, 2020.