Commercial Vehicle Group, Inc. (the “Company” and “CVG”) (Nasdaq: CVGI) today announced it has closed on a $175 million Term Loan and Security Agreement, with interest at LIBOR plus 600 and maturity on April 12, 2023 (“TLS Agreement”), initiated to refinance the Company’s $235 million 7.875% notes due April 2019 (the “7.875% notes”). Concurrent with the closing of the TLS Agreement, a notice of redemption of the 7.875% notes, the proceeds from the term loan and approximately $74 million of cash was delivered to the trustee to retire the 7.875% notes and to pay accrued interest. The Company also announced today that it has entered into a Third Amended and Restated Loan and Security Agreement (the “Third ARLS Agreement”) extending and upsizing its revolving credit facility to $65 million from $40 million, and extending the maturity date to April 2022 from April 2018.
Tim Trenary, Chief Financial Officer, stated, “We are pleased to have successfully completed the refinancing of the Company’s senior secured notes and the upsizing and extension of the revolving credit facility. This was made possible, in part, by the Company’s continuing operational and restructuring efforts, focus on managing down selling, general and administrative costs, and effective working capital management. Pro forma for this refinancing, the Company’s gross leverage will decline and interest expense will be reduced to approximately $13 million annually, or by about $6 million less per year, which we believe will contribute to improved earnings and therefore value creation for our shareholders.”
