AirBoss amends and downsizes revolving credit facilities

By Wendy Van Sickle

Columbus, Ohio, March 27 – AirBoss of America Corp. amended its senior secured revolving credit facilities, downsizing the facilities to $150 million from $250 million in 2024 and 2025 and to $175 million thereafter, according to a news release.

Additionally, starting with dividends payable after April, the company will pay a maximum quarterly dividend of C$1 million, until the end of 2025; and a cap of $10 million in 2024 and $20 million in 2025 was placed on capital expenditures, unless approved by the lenders.

Finally, the leverage and interest coverage ratios were replaced with minimum adjusted EBITDA and liquidity requirements, and certain charges were excluded from the calculation of adjusted EBITDA until the end of 2024.

“While these amendments require some adjustments to our dividend and capital expenditure policies, we believe they are in the best interest of our shareholders and other stakeholders as they will enable us to invest in our long-term growth and create sustainable value while prioritizing deleveraging, continuing our goal of transforming AirBoss into a global market leader in the custom rubber compounding market and the industries which we serve,” Chris Bitsakakis, president and co-chief executive officer of AirBoss, said in the release.

Toronto-Dominion Bank remains the sole lead arranger, National Bank of Canada, Comerica Bank, JPMorgan, Bank of Montreal, Canadian Imperial Bank of Commerce and Royal Bank of Canada remain the additional members of the lending syndicate.

The developer and manufacturer of advanced custom rubber compounds and finished rubber products is based in Newmarket, Ont.

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