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NN, Inc. Announces Amendments to Term Loan and Asset Backed Credit Facility
CHARLOTTE, N.C., March 07, 2023 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today announced an amendment to its $150
About this update from Nn, Inc.
[{"type":"text","content":"CHARLOTTE, N.C., March 07, 2023 (GLOBE NEWSWIRE) -- NN, Inc. (NASDAQ: NNBR), a diversified industrial company, today announced an amendment to its $150 million term loan with funds managed by Oaktree Capital Management, L.P. (“Oaktree”). The Company also amended its asset backed credit facility (ABL) with J.P. Morgan. “We are pleased to complete these amendments with Oaktree and J.P. Morgan, which allow us to focus on executing our strategic initiatives driving growth, improved profitability and cash flow while providing flexibility in what remains an uncertain operating environment,\" said Warren Veltman, President and Chief Executive Officer of NN. Summary of Amendments: Increases quarterly maximum leverage ratio covenant for the duration of the term loan, which matures in September 2026.Incorporates a new $20 million domestic liquidity covenant, tested quarterly for the duration of the term loan. Reduced to $15 million if a qualifying equity raise occurs by June 30, 2023.The existing cap on customer receivable financing programs has been increased from $20 million to $30 million, which allows further utilization of these programs to improve liquidity.Additional interest, which shall be payable in kind and adjusts lower depending on the Company achieving certain leverage ratios or completing a qualifying equity raise by June 30, 2023.Penny warrants, in lieu of cash, issued as a term loan amendment fee, with additional penny warrants to be issued if a qualifying equity raise is not completed by June 30, 2023. Mike Felcher, NN Senior Vice President and CFO, commented, “We appreciate the partnerships we have with Oaktree and J.P. Morgan and their support of our long-term growth strategy. These amendments provide us operational flexibility and allow us time to complete our facility rationalization plan and other actions, which will improve our profitability and free cash flow.” About NN, Inc.NN, Inc., a diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has 30 facilities in North America, Europe, South America, and Asia. Except for specific historical information, many of the matters discussed in...