ANDERSON, IN -- Remy International has closed on the sale of its light and medium truck diesel engine and component remanufacturing business conducted by Franklin Power Products, Inc. and International Fuel Systems, Inc. to Caterpillar Inc. Total cash proceeds were $153.2 million, including $3.2 million of an estimated post-closing purchase price adjustment. The company does not anticipate the purchase price will change materially when final post-closing adjustments are determined.

"We are pleased that we were able to complete the sale of these non-core businesses," said John Weber, president and chief executive officer. "Available proceeds from the sale were used to reduce our debt burden while the company continues to focus on improving margins of its core businesses and to delever its balance sheet."

As previously announced, the company amended its senior secured revolving credit and term loan facility to effectuate the sale. Under the terms of the amendment, the first $50 million of proceeds from the transaction have been deposited in a restricted account, pledged as collateral to the company's lenders under the Senior Credit Facility and available for withdrawal only with the required consent of senior lenders. $7.8 million of the proceeds were retained by the company to pay certain expenses related to the transaction and make a required distribution of available cash to a joint venture partner of the business. The remaining $95.4 million was used to repay outstanding revolver borrowings under the Senior Credit Facility. As also announced previously, the revolving portion of the senior credit facility was permanently reduced by $40 million, from $160 million to $120 million. The company estimates its liquidity to be $98.2 million, consisting of unrestricted cash and cash equivalents of $22.7 million and permitted availability under the company's revolving credit facility of approximately $75.5 million as of the closing date and after application of sale proceeds described above.

Rothschild Inc. is assisting the company in exploring strategic alternatives to delever its balance sheet and enhance its liquidity position, which continues to be affected by debt service and other requirements and automotive industry pressures.

For more information about Remy International, go to: http://www.remyinc.com.