CHARLOTTE, N.C. — NN, Inc. (NASDAQ: NNBR) has completed a $183 million refinancing package through two separate agreements with PNC Bank and Marathon Asset Management, the company announced Tuesday.
The transaction includes a $65 million asset-backed loan (ABL) from PNC Bank and a $118 million term loan from Marathon, both maturing in 2030. The dual-structure refinancing improves NN’s borrowing capacity, lowers costs in parts of its capital stack, and gives it greater flexibility to pursue its business transformation strategy.
The ABL, finalized in January, includes a $15 million capital expenditure line and features improved collateral and borrowing terms at slightly reduced rates. The newly announced term loan with Marathon includes a $10 million add-on feature and more favorable leverage and liquidity covenants, though it carries slightly higher rates than the company’s prior term facility.
“This is an important milestone and allows us to continue the aggressive value advancement of NN,” said Harold Bevis, president and CEO of NN, Inc. “The new term loan has multiple improved operational features that will enable us to improve and grow faster.”
Randy Raisman, Head of U.S. Opportunistic Credit at Marathon, which manages $23 billion in assets, expressed confidence in the partnership. “We look for lending opportunities like this and stand ready to support the team as they build up and advance the company,” Raisman said.
Bevis outlined NN’s transformation goals, including organic growth, cost reduction through operational unification, and pursuing strategic M&A. “Our new capital structure allows us to aggressively move forward with our transformation plan,” he added.
NN, headquartered in Charlotte, North Carolina, manufactures high-precision components and assemblies for industrial markets globally. The company plans to file additional transaction details with the SEC on Form 8-K.