NN amends covenants under $150 million term loan via Oaktree funds

By Marisa Wong

Los Angeles, March 4 – NN, Inc. amended its 5.5-year $150 million term loan with funds managed by Oaktree Capital Management, LP, according to a press release.

The amendment increases the maximum total leverage ratio covenants for all quarters of 2022 and 2023.

Specifically, the quarterly maximum leverage ratio was increased to a range of 0.25x to 0.75x for 2022 and 2023.

No change was made to the interest rate.

“The amendment provides us time and flexibility to continue to make the right long-term decisions for the business as we return to a normal operating environment,” Warren Veltman, president and chief executive officer of NN, said in the press release.

“In 2022, we expect the unprecedented impacts of supply chain disruption for semiconductor chips and other key inputs as well as inflation that we have experienced in 2021 to stabilize. These developments, coupled with the pricing actions we have taken with customers to recover inflation is expected to result in improved profitability in 2022.”

NN is a diversified industrial company based in Charlotte, N.C.

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