Commercial Vehicle Group, Inc. (the “Company” and “CVG”) (Nasdaq: CVGI) today announced its intention to refinance the Company’s $235 million 7.875% notes due April 2019 (the “7.875% notes”) with an institutional term loan; more specifically, a $175 million Term Loan B facility, and the remainder being redeemed with approximately $60 million of cash on the balance sheet. The Company expects to close the refinancing after the redemption premium on the 7.875% notes steps down to zero in April of this year.
In conjunction with our intention to refinance the debt and the timing thereof, the Company is providing projections of selected preliminary expected results for the three months ending March 31, 2017, as indicated below:
- Revenues are estimated at $157.0 – $167.0 million.
- Operating Income is estimated at $3.8 – $4.4 million.
- Adjusted EBITDA is estimated at $8.5 – $9.3 million.
(See Appendix A for Reconciliation of GAAP to Non-GAAP Financial Measures)
The Company does not intend to provide projections of selected preliminary expected results in the future.
Tim Trenary, Chief Financial Officer, stated, “The Company’s continuing operational and restructuring efforts and focus on managing down selling, general and administrative costs has allowed us to protect our margins during a cyclical decline of sales. Furthermore, cash on the balance sheet has grown to $130 million at December 31, 2016. This financial performance, taken together with the favorable credit markets at this time, is an opportunity for the Company to refinance its 7.875% notes. We also intend to upsize our ABL facility to $65 million in conjunction with the refinancing of the notes. Pro forma for the expected refinancing, cash on the balance sheet will approximate $65 million and debt will be $175 million. We believe this reduced debt obligation and corresponding reduction in interest expense will improve the Company’s earnings.”
This press release does not constitute an offer or solicitation of an offer to purchase a security.
GAAP to Non-GAAP Reconciliation
A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to this release.
