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Power Solutions International Announces Additional $50 Million Shareholder Loan Agreement With Weichai America
WOOD DALE, Ill., Dec. 16, 2021 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in the design,
About this update from Power Solutions International, Inc.
[{"type":"text","content":"WOOD DALE, Ill., Dec. 16, 2021 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the “Company” or “PSI”) (OTC Pink: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced today that it entered into an additional shareholder’s loan agreement with its majority stockholder, Weichai America Corp. (“Weichai”), dated as of December 10, 2021 (the “Third Shareholder’s Loan Agreement”). The Third Shareholder’s Loan Agreement, which matures on November 30, 2022, provides the Company with access to up to $50 million of credit at the discretion of Weichai to supplement the Company’s working capital. The Third Shareholder’s Loan Agreement is subordinated in all respects to the Company’s existing $130 million senior secured revolving credit facility with Standard Chartered Bank (all of which has been fully borrowed as of December 16, 2021). Borrowings under the Third Shareholder’s Loan Agreement will incur interest at the applicable London Interbank Offer Rate (“LIBOR”), plus 4.5% per annum. As of December 16, 2021, PSI has borrowed $25 million under the Third Shareholder’s Loan Agreement. Lance Arnett, chief executive officer, commented, “We are pleased to enhance our liquidity through this additional loan agreement. We are appreciative of Weichai’s continued support of PSI and look forward to executing on our strategic collaboration together.” The Company previously entered into loan agreements with Weichai which includes a $130 million first amended and restated shareholder’s loan agreement (“First Shareholder’s Loan Agreement”) and a $25 million additional shareholder’s loan agreement (the “Second Shareholder’s Loan Agreement”). As of December 16, 2021, PSI had no borrowings under the First Shareholder’s Loan Agreement and $25 million of borrowings under the Second Shareholder’s Loan Agreement. Additional details on the Shareholder’s Loan Agreement can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 16, 2021. About Power Solutions International, Inc. Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufa...