Commercial Vehicle Group (CVG), a leading supplier of fully-integrated system solutions for the global commercial vehicle market and ecommerce material handling markets, today announced that it has amended its (i) Term Loan and Security Agreement with Bank of America, N.A., as agent, and the lenders party thereto, and (ii) asset-based Revolving Credit Facility with Bank of America, N.A., as agent, and certain financial institutions as lenders.
This new agreement amends the terms of existing agreements and temporarily suspends the leverage ratio covenant through the fiscal quarter ending December 31, 2020, and resets the leverage ratio covenant levels for quarterly periods ended March 31, 2021, through September 30, 2021, before returning to the original leverage ratio covenant for the quarterly period ended on December 31, 2021. The amendment also temporarily adds a new minimum consolidated liquidity covenant of $40 million for the quarters ended June 30, 2020, through September 30, 2021, and amends certain restrictive covenants limiting the Company’s ability to incur additional debt, grant liens, repurchase the Company’s stock and to issue dividends or make investments. The amendment increases the ability of the Company to restructure its operations. The maturity date remains unchanged.
The Revolving Amendment amends the terms of the Revolving Loan Agreement to align certain of the restrictive covenants with the restrictive covenants set forth in the Term Loan Agreement, as amended.
“We are pleased with this new agreement as it provides our lenders with appropriate financial returns and provides the Company with additional flexibility to right-size certain parts of the Company to a post-Covid environment. The coronavirus has impacted over half of our business, and this needs to be properly addressed. This new agreement expands our ability to improve as a Company and we are thankful. We continue to believe that our ample liquidity is sufficient to meet our operating needs, our new growth needs, and our restructuring needs,” said Harold Bevis, President and Chief Executive Officer of CVG.
Complete details of the amendments can be found in the Company’s 8-K filing, filed on May 11, 2020, with the U.S. Securities and Exchange Commission.
SOURCE: CVG
