Gentherm enters into $100 million revolver, $50 million term loan

By Angela McDaniels

Tacoma, Wash., Aug. 7 – Gentherm Inc. entered into a credit agreement on Thursday that provides for a $100 million secured revolving credit facility, a $50 million secured term loan and a €20 million secured term loan, according to an 8-K filing with the Securities and Exchange Commission.

Each loan matures Aug. 7, 2019.

Direct and indirect subsidiaries Gentherm GmbH, Gentherm (Texas), Inc., Gentherm Canada Ltd. and Global Thermoelectric Inc. are additional borrowers under the revolver. Gentherm GmbH is the borrower for the euro-denominated term loan.

The revolver has a $10 million sublimit for Gentherm Canada and Global Thermoelectric and a $25 million sublimit for Gentherm GmbH.

Under the credit agreement’s accordion feature, Gentherm can increase the revolver or incur additional term loans in an aggregate amount of $50 million.

The interest rate is either the base rate, for U.S. dollar-denominated loans to Gentherm or Gentherm Texas, or Libor plus a margin that is 50 basis points to 100 bps for base rate loans or 150 bps to 200 bps for Libor loans. The exact margin depends on the consolidated total leverage ratio of Gentherm and its subsidiaries.

Bank of America Merrill Lynch is the lead arrangers and bookrunner. Bank of America, NA is the administrative agent, swingline lender and letter of credit issuer. JPMorgan Chase Bank, NA is the syndication agent. HSBC Bank USA, NA is the documentation agent.

The credit facilities are secured by a security interest in substantially all personal property of Gentherm, Gentherm Texas and Westridge Haggerty LLC, including the stock and membership interests of Gentherm’s and Gentherm Texas’ subsidiaries (limited to 66% of the stock in the case of certain non-U.S. subsidiaries).

Also on Thursday, Gentherm and Gentherm GmbH paid off all amounts owed under the credit agreement entered into on March 30, 2011 and Gentherm Canada paid off all amounts owed under the credit agreement entered into on March 30, 2011, and both credit agreements were terminated.

Gentherm makes thermal management technologies for automobiles and is based in Northville, Mich.

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