Follow us      
Subscribe to AMN
About Us
Contact Us
Advertise
 
Remy International Closes Refinancing Of Term B Loan Credit Agreement And Asset Based Line (ABL) Amendment
March 6, 2013
|
By aftermarketNews staff
PENDLETON, Ind. – Remy International announced that it has closed the refinancing of its existing senior secured Term B Loan with a new $300 million seven-year Term B Loan facility, through Bank of America N.A. Remy also amended its existing $95 million ABL Credit Agreement with Wells Fargo Capital Finance LLC and Bank of America, N.A.
 
Remy says the new capital structure will provide significant benefits for the company including:
 
* Reducing the Term B Loan cash yield from 6.25 percent to 4.25 percent
* Providing increased financial flexibility with updated covenants
* Extending the maturity of the Term B Loan from Dec. 17, 2016, to March 5, 2020
* Extending the maturity of the ABL Credit Agreement from Dec. 17, 2015, to Sept. 5, 2018
* Lowering the cost of borrowing on its ABL
 
Fred Knechtel, Remy International's CFO, said, "We were pleased to be able to take advantage of the strong credit markets to refinance the Term B Loan and amend the ABL. This refinancing lowers interest expense by approximately $6 million and adds 11 cents to diluted earnings per share."
 
"The favorable terms are a reflection of improved markets and Remy's strong performance," added President and CEO Jay Pittas. "The new credit agreement provides us the financial flexibility needed to fund potential acquisitions and the regional expansion necessary to support our global growth strategy."
 
Bank of America N.A. acted as administrative agent and joint lead arrangers included Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Securities LLC, Wells Fargo Securities LLC and Deutsche Bank Securities Inc.