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Stoneridge enters $100 million five-year asset-based facility
By Susanna Moon
Chicago, Dec. 2 - Stoneridge, Inc. said it closed a new asset-based credit facility for up to $100 million, replacing the credit agreement set to expire Nov. 1, 2012.
Interest on the loans is Libor plus 120 basis points to 185 bps, based on the undrawn availability, according to a company press release.
The credit facility expires on Dec. 1, 2016, and the facility fee is 30 bps to 40 bps.
Stoneridge said the new agreement does not contain financial covenants that would constrain the company's borrowing capacity. "Enhanced" restrictions from its prior agreement include increased limits on capital expenditures, operating leases, investments and other activities in negative covenants, some of which are based on levels of undrawn availability, according to the release.
In addition, the new agreement increases the sublimit on Mexican inventory, which has increased as the company's operations have continued to expand. This will increase the borrowing base but will have no effect on the $100 million limit, the release noted.
"The new credit facility will offer Stoneridge greater flexibility in financing our growth initiatives such as the recently announced PST transaction to purchase an additional 24% ownership in our Brazilian joint venture," George E. Strickler, executive vice president and chief financial officer, said in the release.
Stoneridge is a Warren, Ohio-based designer and manufacturer of highly engineered electrical and electronic components, modules and systems principally for the medium- and heavy-duty truck, automotive and agricultural and off-highway vehicle markets.
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