NN Amends Credit Facilities With KeyBank, Others
NN, Inc. announced that it has amended its $100 million bank revolving credit facility and its fixed rate notes agreement. The company’s improving credit profile allowed for the amendments to the agreements. The facility is provided by a syndicate of banks including KeyBank as agent, Regions, BB&T and Wells Fargo.
James H. Dorton, senior vice president and chief financial officer commented, “On October 26, 2012 we amended and restated our $100 million revolving credit agreement to provide for a reduction in interest rates and to extend the maturity to 2017.
“We are pleased to have completed these amendments to our lending agreements which will result in a significant reduction in borrowing costs. At current borrowing levels, the reduction in interest rates will result in an interest reduction of approximately $600,000 per year. Perhaps more importantly, the new agreements provide added flexibility to continue acquisitions and allows for the potential reinstatement of dividends and the repurchase of common stock. Covenant levels have also been adjusted to recognize NN’s improved credit profile.”
Interest rates for the company’s floating rate LIBOR based debt will decrease by 1.25% and the fee on unused committed lines will decrease by 0.20%. As of September 30, 2012, there was approximately $44 million in loans outstanding under the credit facility.
Additionally, the Prudential Capital fixed-rate note agreements were amended to lower the rate on the Series A notes due April 26, 2014 from 5.39% to 4.89%. As of September 30, 2012, there was approximately $11.4 million outstanding in the Series A notes and $20 million outstanding in Series B 4.64% notes due 2018.
NN, Inc. manufacturers and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis.