Business
Gentherm Provides Update Related to COVID-19
Secures Additional $169 million from Revolving Credit Facility Withdrawing 2020 Guidance NORTHVILLE, Mich., March 25, 2020 (GLOBE NEWSWIRE) -- Gentherm
About this update from Gentherm Inc
[{"type":"text","content":"Secures Additional $169 million from Revolving Credit Facility Withdrawing 2020 Guidance\nNORTHVILLE, Mich., March 25, 2020 (GLOBE NEWSWIRE) -- Gentherm (NASDAQ:THRM), a global market leader and developer of innovative thermal management technologies, today provided an update on its business and financial position in light of the impact of the COVID-19 pandemic on the global economy.\n As a safeguard against the uncertainties ahead surrounding the COVID-19 pandemic, the Company has recently drawn an additional $169 million on its revolving credit facility to increase its cash position and provide additional financial flexibility. As of March 20, 2020, the Company had approximately $35 million in cash, cash equivalents and restricted cash prior to the draw down. As a result of the draw down, a total of $224 million was outstanding under the revolving credit facility. The Company has $240 million remaining available for additional borrowings subject to specified conditions that Gentherm currently satisfies. In addition, the Company is prudently addressing its day-to-day operations, including reducing expenses, inventory levels and capital spending. “At Gentherm, our top priority remains the health and safety of our employees, customers and communities. Our dedicated teams are operating in a highly dynamic situation, and we continue to assess the implications for our business across both our customer and supply bases,” said Phil Eyler, President and Chief Executive Officer. “While our Automotive operations that drive a substantial portion of our revenues are operating at a reduced capacity, the demand for medical equipment such as our Blanketrol® has grown and the production of our medical products is considered essential manufacturing under current government mandates.” The COVID-19 pandemic is dramatically affecting the automotive industry including the temporary suspension of vehicle production across Asia, Europe and North America. As a result of the unprecedented uncertainty facing the automotive industry and global economy, Gentherm is withdrawing its 2020 guidance. The Company will provide a further update when it announces first-quarter results in late April. Eyler concluded, “While the health crisis has created significant near-term challenges, the fundamentals of our business are strong. Over the past two years, we have d...