Gentherm restates revolver for $500 million maturing in 2027

By Wendy Van Sickle

Columbus, Ohio, June 13 – Gentherm Inc. entered into a second amended and restated credit agreement on Friday, providing for a $500 million secured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission.

There is a $50 million submit for swingline loans and a $15 million submit for letters of credit. The prior facility was sized at $475 million.

Gentherm can increase the newly restated revolver or incur secured term loans in an aggregate amount of up to $200 million.

The new maturity date is June 10, 2027, versus June 27, 2024 under the previous revolver.

Borrowings bear interest at term SOFR plus a margin ranging from 112.5 basis points to 212.5 bps, and a commitment fee ranges from 17.5 bps to 30 bps, both depending on consolidated net leverage ratio.

The agreement may be amended by the parties to incorporate some environmental, social and governance key performance indicators that may be established by Gentherm and that would cause the interest margin and fees to rise or fall by up to 5 bps and 1 bp, respectively.

Bank of America, NA is the administrative agent. BofA Securities, Inc. is the bookrunner and a lead arranger along with J.P. Morgan Securities LLC. JPMorgan Chase Bank, NA is syndication agent. PNC Bank, NA, HSBC Bank USA, NA and Wells Fargo Bank, NA are the co-documentation agents.

Proceeds may be used to refinance existing debt, for working capital and for general corporate purposes.

Gentherm is a Northville, Mich.-based developer of thermal management technologies.

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