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PNC Agents Stoneridge’s $300MM Revolving Credit Facility

September 16, 2014, 07:13 AM
Filed Under: Manufacturing

Stoneridge, Inc. entered into a new $300.0 million senior secured revolving credit facility that replaces the company's asset-based facility and will be used to redeem the remaining $157.5 million of its outstanding Senior Secured 9.5% Notes (the "Notes"). The new credit facility uses a pricing grid to determine interest based on LIBOR plus a LIBOR margin and a facility fee.  The company expects the initial LIBOR margin to be 145 basis points for borrowed amounts and the initial facility fee to be 30 basis points for the entire $300.0 million facility.  In addition, the company expects initial borrowing under the new facility to approximate $110.0 million after redemption of the remaining notes which is expected to occur in mid-October, 2014.

An 8-K filed with the SEC notes that PNC Bank served as agent and lead arranger on the facility.

"Closing the refinancing transaction and calling our remaining Notes marks another significant milestone in our journey to transform Stoneridge," said John C. Corey, President and Chief Executive Officer of Stoneridge.

Corey added, "The new Credit Facility will reduce interest expense significantly and offer much greater flexibility to our capital structure while improving our free cash flow which will provide greater value to our shareholders."

Click here to view the SEC 8-K report filed on Sep. 15, 2014.

Stoneridge, Inc., headquartered in Warren, OH, is an independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the automotive, commercial vehicle, motorcycle and off-highway vehicle markets.

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