Accuride, a supplier of components to the North American commercial vehicle industry, announced that it closed a new $100 million ABL credit facility with Wells Fargo Capital Finance as lead arranger and administrative agent; BMO Harris Bank as syndication agent; and Deutsche Bank.
The new facility, which includes a $10 million FILO tranche, replaces the company’s existing $100 million senior secured credit facility.
The new asset-based credit facility’s significant benefits to Accuride include:
Extending maturity to April 2018; lowering grid pricing by approximately 175 bps and unused fee by 25 bps; enhancing liquidity by approximately >$10 million through higher advance rates and FILO; and increasing financial flexibility with updated covenants.
Accuride vice president and chief financial officer Greg Risch commented: “We are very pleased with the results of our refinancing, which provide us with greater financial flexibility to operate our business through the current North American commercial vehicle industry cycle and into the future. Our new ABL credit facility lowers our borrowing costs and increases liquidity, as compared to our previous facility, and supports our pursuit of strategic opportunities to grow Accuride organically, as well as through potential acquisitions and partnerships.”