Motorcar Parts of America amends, extends loan agreement to 2028

By Mary-Katherine Stinson

Lexington, Ky., Dec. 13 – Motorcar Parts of America, Inc. entered into an eighth amendment to its $238.62 million amended and restated revolving credit, term loan and security agreement with PNC Bank, NA as the agent on Dec. 12, according to a press release and an 8-K filing with the Securities and Exchange Commission.

D & V Electronics Ltd., Dixie Electric Ltd. and Dixie Electric Inc. are listed as the Canadian borrowers.

The amendment makes the following changes:

• Extends the term of the agreement to Dec. 12, 2028;

• Provides for a pricing grid with the applicable margin for term SOFR loans ranging from 275 basis points to 325 bps based on average daily undrawn availability for the most recently completed calendar quarter;

• Modifies the existing fixed charge coverage ratio financial covenant to be a springing financial covenant that is only tested if undrawn availability, which may include up to $8 million of suppressed availability, is less than 22.5% of the total revolving commitments and ends testing if the undrawn availability exceeds the threshold for 30 consecutive days; and

• Amends the definitions of consolidated EBITDA, fixed charge coverage ratio and certain component definitions.

Initially, the applicable margin for the term SOFR loans will be 325 bps. The adjustment date is the first business day following each calendar quarter-end.

The press release noted, as previously disclosed, that the company paid down its outstanding $11.25 million term loan during its fiscal 2024 second quarter.

Torrance, Calif.-based Motorcar Parts is a remanufacturer, manufacturer and distributor of automotive aftermarket parts.

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