Motorcar Parts of America Announces Refinancing of Credit Facility
LOS ANGELES, Nov. 12, 2013 (GLOBE NEWSWIRE) -- Motorcar Parts of America, Inc.
(Nasdaq:MPAA) today announced it has entered into an amended and restated $125
million credit facility, comprised of a $95 million term loan and a $30
million revolving credit facility with Cerberus Business Finance, LLC as
collateral agent and PNC Bank National Association, a member of the PNC
Finance Services Group, Inc. (NYSE:PNC), as administrative agent. The amended
and restated credit facility replaces a previous $125 million credit facility,
comprised of a $105 million term loan and a $20 million revolver.
Based on current interest rates, the interest rate for the new term loan is
6.75 percent, consisting of a LIBOR floor of 1.50 percent plus a margin of
5.25 percent. The revolving credit facility interest rate is LIBOR plus a
margin of 2.50 percent.This represents a saving of approximately 3.75 percent
for the term loan and 0.5 percent on the revolver. At closing, the company had
a $95 million term loan outstanding in addition to $10 million of borrowings
on the revolving credit facility, with a blended interest rate currently of
approximately 6.4 percent.The company had approximately $30 million of cash
on hand at closing.
"The amended and restated credit facility reduces our blended rates by
approximately 4 percent and also gives the company the flexibility to
repurchase stock and to pay down an incremental $10 million of the term loan
within the next 120 days.The new facility will result in reduced interest
expense and provides greater financial flexibility to execute management's
strategic growth plans," said Selwyn Joffe, chairman, president and chief
In conjunction with entering into the amended and restated financing
agreement, the company incurred various fees and expenses, including a
pre-payment premium stipulated in the original loan agreement of approximately
$3.0 million on the company's prior credit facility.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a remanufacturer, manufacturer and
distributor of automotive aftermarket parts – comprised of alternators,
starters and wheel hub assembly products utilized in imported and domestic
passenger vehicles, light trucks and heavy duty applications.Motorcar Parts
of America's products are sold to automotive retail outlets and the
professional repair market throughout the United States and Canada, with
remanufacturing facilities located in California, Mexico and Malaysia, and
administrative offices located in California, Tennessee, Mexico, Singapore and
Malaysia. Additional information is available at www.motorcarparts.com.
CONTACT: Gary S. Maier
Maier & Company, Inc.
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