Horizon Global closes financing agreement with Atlantic Park

By Taylor Fox

New York, Feb. 3 – Horizon Global Corp. closed a new financing agreement with Atlantic Park Strategic Capital Fund, LP, according to a news release.

The six-year agreement addresses all of the company’s near-term maturities, provides long-term stability to its capital structure and offers the financial flexibility necessary to pursue its strategic initiatives.

The new agreement includes a reduction of the company’s interest rate to Libor plus 750 basis points, flexible financial covenants and a call protection schedule providing strategic optionality.

The new term loan will mature on Feb. 2, 2027.

In connection with the new term loan, the company issued to Atlantic Park warrants to purchase up to 10% of its pro forma fully diluted shares of common stock at an exercise price of $9 per share.

The warrants have a five-year term, provide alignment between Atlantic Park and the company’s shareholders as well as reflect Atlantic Park’s confidence in the growth and long-term value of the company.

Proceeds will be used to fully repay outstanding debt and create a $125 million delayed draw term loan with capacity to repay all of the company’s outstanding convertible senior notes at maturity on July 1, 2022.

Horizon is a Plymouth, Mich.-based manufacturer of branded towing and trailering equipment.

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