PSIX - Power Solutions International Announces Extension to $50 Million Shareholder Loan Agreement With Weichai America | Benzinga
WOOD DALE, Ill., Dec. 05, 2023 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the "Company" or "PSI") (OTC:PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced today that it amended and restated its $50 million shareholder's loan agreement with its majority stockholder, Weichai America Corp. ("Weichai"), dated as of November 29, 2023 (the "Third Shareholder's Loan Agreement"), to extend the loan maturity date to November 30, 2024. 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 (of which $65 million has been fully borrowed as of December 5, 2023).
Borrowings under the Third Shareholder's Loan Agreement will incur interest at the applicable Secured Overnight Financing Rate ("SOFR"), plus 4.05% per annum. Further, if the applicable term SOFR is negative, the interest rate per annum shall be deemed as 4.05% 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%.
Dino Xykis, chief executive officer, commented, "We are appreciative of Weichai's support of PSI and look forward to our continued collaboration together."
Additional details on the Third 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 5, 2023.
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 manufacturers and end-user customers within the ...