Standard Motor Products, an automotive parts manufacturer and distributor, entered a new five-year $500 million credit facility, with JPMorgan Chase, as agent, and a syndicate of lenders.
The facility includes a $100 million term loan and $400 million revolving credit facility. In addition, SMP entered into an interest rate swap agreement to fix the interest rate on $100 million of borrowings under the new credit facility.
“Our company has experienced significant growth since we put our last lending facility in place, driven by our strategic initiatives as well as the favorable backdrop for organic growth that our industry provides,” Nathan Iles, Standard Motor Products’ chief financial officer, said. “This new credit facility, along with our strong cash flow generation, is expected to afford us the flexibility we need to support our growth and continue to execute on strategic priorities. The new facility should also allow for our continued focus on returning value to our shareholders with quarterly dividends and opportunistic share repurchases.”
The new credit facility will mature in June 2027, and the proceeds from the new credit facility will be used to repay all outstanding borrowings under the company’s existing revolving credit facility, and pay certain fees and expenses that were incurred in connection with the new credit facility and for other general corporate purposes.
