NNBR - NN amends term loan and asset backed credit facility
2023-03-07 16:58:36 ET
- NN ( NASDAQ: NNBR ) announced an amendment to its $150M term loan with funds managed by Oaktree Capital Management, L.P. (“Oaktree”). The Company also amended its asset backed credit facility with J.P. Morgan.
- The amendment increased quarterly maximum leverage ratio covenant for the duration of the term loan, which matures in September 2026.
- Incorporates a new $20 million domestic liquidity covenant, tested quarterly for the duration of the term loan. Reduced to $15 million if a qualifying equity raise occurs by June 30, 2023.
- The existing cap on customer receivable financing programs has been increased from $20 million to $30 million, which allows further utilization of these programs to improve liquidity.
- Additional interest, which shall be payable in kind and adjusts lower depending on the Company achieving certain leverage ratios or completing a qualifying equity raise by June 30, 2023.
- Penny warrants, in lieu of cash, issued as a term loan amendment fee, with additional penny warrants to be issued if a qualifying equity raise is not completed by June 30, 2023.
- Source: Press Release
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NN amends term loan and asset backed credit facility