Business
CVG Announces the Successful Refinancing of Its Senior Notes, Lowering Its Interest Cost and Enhancing Its Financial Flexibility
NEW ALBANY, Ohio, May 03, 2021 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI) ("CVG" or the "Company") today announced that on April 30, 2021 it had closed on $275
About this update from Commercial Vehicle Group, Inc.
[{"type":"text","content":"NEW ALBANY, Ohio, May 03, 2021 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI) (\"CVG\" or the \"Company\") today announced that on April 30, 2021 it had closed on $275 million in senior secured credit facilities, consisting of a $150 million Term Loan A (the \"Term Loan A\") and a $125 million Revolving Credit Facility (the \"Revolver\" and together with the Term Loan A the \"Senior Secured Credit Facilities\"). The Company used a portion of the proceeds of the Senior Secured Credit Facilities to pay off its existing Term Loan B and Asset Backed Loan Facility which at April 30, 2021 had outstanding principal of $151.6 million and $11.3 million respectively. CVG expects to reduce its interest expense by approximately $3.1 million on a full quarter basis as a result of this transaction. Harold Bevis, President and Chief Executive Officer, commented, “Over the last year, we embarked on a strategy to transform the business - grow and diversify our revenues through new products, new customers and new markets; grow our earnings; reduce our fixed costs; and add additional talent to our great team. We are diversifying our end market concentration away from legacy diesel trucks and towards the last mile, warehouse automation and electric vehicles. We believe that this will ultimately reduce the cyclicality in our results and deliver more consistent sales and profits. We are pleased to refinance our debt with a terrific bank group and achieve a flexible structure that will allow us to have up to $200 million of acquisition capital. This is a major milestone in our business transformation program.” Chris Bohnert, Chief Financial Officer, added, “This refinancing, which was heavily oversubscribed, is a significant accomplishment which will not only reduce our quarterly interest expense by approximately $3.1 million but will also provide financial flexibility as we can now explore attractive M&A opportunities to further grow our business. I am also very pleased with the blue chip banking partners including Bank of America, Fifth Third Bancorp, and PNC Bank. These are outstanding partners who we can grow with as we execute on our expansion plans.” The five-year Term Loan A will have tiered interest costs based on the total consolidated leverage ratio ranging from Eurodollar +225 bps with a leverage ratio 3.0x. The Eurodollar floor is 25 bps. The five...