Standard Motor Products (SMP), an automotive parts manufacturer and distributor, entered into a new five-year $750 million credit facility with JPMorgan Chase Bank as agent and a syndicate of lenders. The credit facility includes $310 million of term loans and a $440 million revolving credit facility, and allows for borrowing in multiple currencies. In addition, SMP intends to use interest rate swap agreements to fix the interest rate on approximately $200 million of borrowings._x000D_
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“We are pleased to get this long-term agreement in place,” Nathan Iles, chief financial officer of SMP, said. “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 JPMorgan and all our banking partners for their support in helping SMP continue to grow.”_x000D_
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The credit facility replaces SMP’s 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.
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