NEW HAVEN, Conn. — Proliance International has signed a proposal letter with a major bank that would provide a new $60 million senior secured credit facility and replace the company’s current senior lender. The letter provides exclusivity for the proposed lender while it completes due diligence and negotiates definitive agreements.
Establishing a new senior secured credit facility with a new lender was a key condition in the previously announced letter of intent signed by the institutional lenders to separately provide $30 million of mezzanine financing. Completion of both the senior credit and mezzanine financings are expected to occur by the end of this year or early 2009 and are subject to closing conditions, including satisfactory completion of due diligence and execution of definitive agreements.