Power Solutions International, Inc. Amends and Restates $50 Million Shareholders Loan Agreement with Weichai America Corp
December 02, 2022 at 04:27 pm
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Power Solutions International, Inc. announced that it amended and restated its $50 million shareholder's loan agreement with its majority stockholder, Weichai America Corp., dated as of November 29, 2022, to extend the loan maturity date to November 30, 2023. The $50 million loan under the Third Shareholder's Loan Agreement has been fully drawn as of the date of this report and 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 2, 2022). Borrowings under the Third Shareholder's Loan Agreement will incur interest at the applicable Secured Overnight Financing Rate, plus 4.65% per annum.
Further, if the applicable term SOFR is negative, the interest rate per annum shall be deemed as 4.65% per annum. If the interest rate for any loan under the Third Shareholder's Loan Agreement is lower than Weichai's borrowing cost, the interest rate for such loan shall be equal to Weichai's borrowing cost plus 1%.
Power Solutions International, Inc. designs, engineers, manufactures, markets and sells a broad range of advanced, emission-certified engines and power systems that are powered by a wide variety of clean, alternative fuels, including natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial and transportation end markets. The Companyâs products are primarily used by global original equipment manufacturers (OEMs) and end user customers. The Companyâs products include power systems, electric power generation (gensets), large custom genset enclosures, mobile and stationary gensets for: emergency standby, rental, prime power, demand response, microgrid, oil and gas, data center, renewable energy resiliency (wind, solar, storage), combined heat and power (CHP), industrial material handling, agricultural/arbor care, irrigation/pumps, construction, compressors, wood chippers, stump grinders, and sweepers/industrial scrubbers.