PSIX - Power Solutions International Announces Extension to $25 Million Shareholder Loan Agreement With Weichai America | Benzinga
WOOD DALE, Ill., May 21, 2024 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (the "Company" or "PSI") announced today that it amended and restated its $25 million shareholder's loan agreement (the "$25 Million Third Amended and Restated Shareholder's Loan Agreement") with its majority stockholder, Weichai America Corp. ("Weichai"), dated as of May 20, 2024, to extend the loan maturity date to May 20, 2025. The $25 million loan under the $25 Million Third Amended and Restated Shareholder's Loan Agreement has been fully drawn as of the date of this release and is subordinated in all respects to the Company's existing $50 million senior secured revolving credit facility with Standard Chartered Bank (of which $40 million has been borrowed as of May 20, 2024).
Borrowings under the $25 Million Third Amended and Restated 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 $25 Million Third Amended and Restated 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%.
The Company previously entered into two separate loan agreements with Weichai, including the $50 million second amended and restated shareholder's loan agreement (the "$50 Million Second Amended and Restated Shareholder's Loan Agreement") on November 29, 2023, and the $30 million second amended and restated shareholder's loan agreement (the "$30 Million Second Amended and Restated Shareholder's Loan Agreement") on March 22, 2024. As of May 20, 2024, PSI had $50 million of borrowings under the $50 Million Second Amended and Restated Shareholder's Loan Agreement and $19.8 million of borrowings under the $30 Million Second Amended and Restated Shareholder's Loan Agreement.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and ...