AirBoss of America, a developer, manufacturer and provider of survivability solutions of custom rubber compounds and finished rubber products, amended its senior secured revolving credit facility, with key changes including:
- A downsizing of the credit facility from S$250 million to $150 million in 2024 and 2025, and $175 million thereafter
- Commencing with dividends payable after this April, the company will pay a maximum quarterly dividend of C$1 million ($740,000) until the end of 2025
- A maximum of $10 million in 2024 and $20 million in 2025 of capital expenditures unless approved by the lenders
- Replacing the leverage and interest coverage ratios with minimum adjusted EBITDA and liquidity requirements, and excluding certain charges from the calculation of adjusted EBITDA, until the end of 2024.
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“We appreciate the continued support of our syndicate of lenders,” Chris Bitsakakis, president and Co-CEO of AirBoss, said. “While these amendments require some adjustments to our dividend and capital expenditure policies, we believe they are in the best interest of our shareholders and other stakeholders, as they will enable us to invest in our long-term growth and create sustainable value while prioritizing deleveraging, continuing our goal of transforming AirBoss into a global market leader in the custom rubber compounding market and the industries which we serve.”
The syndicate of lenders for the facility continues to include TD Bank as sole lead arranger along with participating lenders National Bank of Canada, Comerica Bank, J.P. Morgan, BMO, Canadian Imperial Bank of Commerce and Royal Bank of Canada.
