Power Solutions International entered into a first amendment to its one-year senior secured revolving credit facility pursuant to a certain credit agreement dated March 27, 2020, between the company and Standard Chartered Bank.
Among other items, the first amendment provides the company with a waiver with regard to the minimum consolidated EBITDA requirements for the quarters ended June 30, 2020 and September 30, 2020. The amendment also amends the calculations of the interest coverage ratio and minimum consolidated EBITDA, reduces the minimum consolidated EBITDA and consolidated interest coverage ratio thresholds for the quarter ended Dec. 31, 2020, and removes the 60-day extension option for the maturity date.
The company incurred a customary amendment fee associated with the amendment; however, there were no changes to the interest rate of LIBOR plus 2% per annum.
“We appreciate the support and flexibility that Standard Chartered has provided to us during a year that has been impacted by the COVID-19 pandemic. As we enter 2021, we are focused on securing a financing solution to support the company’s strategy and look forward to working closely with Weichai, our strategic partner, and continuing discussions with Standard Chartered,” John Miller, CEO of Power Solutions International, said.
Power Solutions International manufactures and sells emission-certified engines and power systems to customers in the energy, industrial and transportation markets.
