Power Solutions International (PSI), a company in the design, engineering and manufacture of emission-certified engines and power systems, entered into a new $220 million committed revolving credit facility. The new three-year credit facility increases PSI’s committed borrowing capacity from $135 million to $220 million, providing enhanced liquidity and financial flexibility to support the company’s continued growth and strategic initiatives. The credit facility matures on Sept. 25, 2029. The credit facility replaces the company’s prior credit facility with Standard Chartered Bank, which was repaid in full and terminated in connection with the closing of the credit facility.
Borrowings under the credit facility bear interest, at the company’s option, at the applicable Term Secured Overnight Financing Rate (SOFR) plus 1.80% per annum or at an alternate base rate plus an applicable margin. SOFR borrowings under the prior facility bore interest at SOFR plus 2.60% per annum.
“The expansion of our committed credit facility is an important step in supporting PSI’s continued growth,” Richard Hu, CEO of PCI, said. “The increased capacity and longer-term committed financing provide additional flexibility as we execute our strategy, serve our customers and pursue growth opportunities across our businesses.”
Kenneth Li, chief financial officer of PSI, added, “The increase in committed capacity from $135 million to $220 million, together with the reduction in our borrowing spread, strengthens our liquidity position and provides additional financial flexibility to support the company’s continued growth. We appreciate the support of our banking partners and their confidence in PSI.”
The lenders under the credit facility are HSBC Bank USA, which also serves as administrative agent; Australia and New Zealand Banking Group; Bank of China (Chicago branch); and BNP Paribas.
