Holley Inc. Announces Refinancing of Its 2018 Credit Facility with New $825 Million Credit Facility
November 19, 2021 at 04:31 pm EST
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Holley Inc. entered into a new credit facility with a syndicate of lenders and Wells Fargo Bank, N.A., as administrative agent for the lenders, letter of credit issuer and swing line lender. The financing consists of a seven-year $600 million first-lien term loan, a five-year $125 million revolving credit facility, and a $100 million delayed draw term loan. The delayed draw term loan is available for six months and is subject to the satisfaction of certain conditions precedent, including, but not limited to, the consent of the lenders providing the delayed draw term loan. In addition, the credit facility includes a letter of credit facility in the amount of $10 million, pursuant to which letters of credit may be issued as long as revolving loans may be advanced and subject to availability under the revolving credit facility. Proceeds from the new credit facility were used repay in full the obligations outstanding under both the Company?s existing first lien credit agreement, dated as of October 26, 2018, between the Company and UBS AG, Stamford Branch as administrative agent and collateral agent and other lender parties thereto and the Company?s existing second lien credit agreement, dated as of October 26, 2018, between the Company and AEA Debt Management LP, as administrative agent and collateral agency and other lender parties thereto, to pay fees and expenses related to the refinancing, and for general corporate purposes. The proceeds of the delayed draw loans made after closing may be used by the Company to finance acquisitions. The first-lien term loan requires amortization in the form of quarterly scheduled principal payments as specified in the Credit Agreement and will mature on November 18, 2028. Amounts outstanding under the first-lien term loan bear an initial interest rate of LIBOR plus 3.75%. In the case of future delayed draw term loans and revolving credit loans, amounts outstanding will accrue interest at a rate equal to either LIBOR or base rate, at the Company's election, plus a specified margin, based on the Company's Total Leverage Ratio, as defined in the Credit Agreement. Obligations under the Credit Agreement are secured by substantially all of the company?s assets. Also, the Credit Agreement includes representations and warranties, and affirmative and negative covenants customary for financings of this type, including, but not limited to, limitations on additional borrowings, additional investments and asset sales.
Holley, Inc. is a designer, marketer, and manufacturer of automotive aftermarket products for car and truck enthusiasts primarily in the United States, Canada and Europe. The Company's products span a number of automotive platforms and are sold across multiple channels. It manufactures a diversified line of performance automotive products, including carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners and automotive performance plumbing products. Its portfolio consists of over 70 brands spanning across over 30 product categories. Its brands include Holley EFI, Holley, MSD, Simpson, Powerteq, Accel and Flowmaster, among others. Its Holley EFI brand focuses on electronic fuel injection technology and showcases its new product development engine. Simpson brand is focused on motorsport safety products including helmets, head and neck restraints, seat belts and fire suits.