Standard Motor amends revolver, increasing pricing, placing limit on convertibles repurchase

By Sara Rosenberg

New York, Dec. 22 - Standard Motor Products Inc. amended its revolving credit facility, raising pricing and setting a $50 million limit on the amount of subordinated convertibles that can be repurchased in the open market prior to the completion of additional debt financing, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Under the amendment, pricing was increased to Libor plus 275 basis points, and on the earlier of March 31 or the closing of a refinancing on the company's convertible subordinated debentures, pricing will further increase to a range of Libor plus 300 bps to 350 bps based on availability.

In addition, the company must maintain a borrowing availability reserve of $15 million, reducing to zero when the convertibles are repaid - upon which minimum borrowing availability of $25 million must be maintained.

The amendment was completed on Dec. 18.

General Electric Capital Corp. is the agent on the revolver.

As of Dec. 18, the company had repurchased $45.1 million of its $90 million of subordinated convertibles.

Also on Dec. 18, the company amended its Canadian credit facility with GE Canada Finance to allow cash proceeds from the divestiture of the Blue Streak Electronics joint venture to be applied in accordance with the requirements of the U.S. revolver and to increase pricing to match the revolver pricing.

Standard Motor is a Long Island City, N.Y.-based manufacturer, distributor and marketer of replacement parts for motor vehicles in the automotive aftermarket industry.

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