Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
PSIX > SEC Filings for PSIX > Form 8-K on 2-Jul-2013All Recent SEC Filings

Show all filings for POWER SOLUTIONS INTERNATIONAL, INC.

Form 8-K for POWER SOLUTIONS INTERNATIONAL, INC.


2-Jul-2013

Entry into a Material Definitive Agreement, Termination of a


Item 1.01 Entry into a Material Definitive Agreement.

On June 28, 2013, Power Solutions International, Inc. entered into a credit agreement with Wells Fargo Bank, National Association, (the "Credit Agreement") which enables the company to borrow under a revolving line of credit which is secured by substantially all of the company's personal property. The Credit Agreement (a) provides an initial maximum $75.0 million revolving line of credit to the company, which, at the company's request and subject to the terms of the Credit Agreement, may be increased up to $100 million during the term of the Credit Agreement; (b) bears interest at Wells' prime rate plus an applicable margin ranging from 0% to 0.50%; or at the company's option, all or a portion of the revolving line of credit can have been designated to bear interest at LIBOR plus an applicable margin ranging from 1.50% to 2.00%; (c) has an unused line fee of 0.25% and (d) requires the company to report its fixed charge coverage ratio when its excess availability as defined in the Credit Agreement is less than the threshold amount, as defined in the Credit Agreement, for a period of 60 consecutive days until the company's availability is greater than or equal to the threshold amount. The threshold amount as defined in the Credit Agreement is defined as the greater of (i) $9,375,000 or (ii) 12.5% of the maximum revolver amount of $75.0 million or as it may be increased during the term of the Credit Agreement up to $100.0 million.

Under the Credit Agreement, the amount that the company can borrow is limited to the lesser of the maximum available amount and borrowing base. The borrowing base is calculated as a percentage of the company's eligible accounts receivable and eligible inventory as defined in the Credit Agreement. At inception, the Company's availability was $55.3 million under the Credit Agreement. The company is required to meet certain financial covenants, including a minimum monthly fixed charge coverage ratio of not less than 1.0 to 1.0, the testing of which commences on the last day of the month prior to the date the company's excess availability as defined in the Credit Agreement is less than the threshold amount, as defined in the Credit Agreement, continuing for a period of 60 consecutive days until the company's availability is greater than or equal to the threshold amount. The Credit Agreement also contains customary covenants and restrictions applicable to the company, including agreements to provide financial information, comply with laws, pay taxes and maintain insurance, restrictions on the incurrence of certain indebtedness, guarantees, liens, restrictions on mergers, acquisitions and certain dispositions of assets, and restrictions on the payment of dividends and distributions. In addition, the Credit Agreement requires the company's cash accounts to be held with Wells Fargo Bank.

The Credit Agreement is scheduled to mature on June 28, 2018.

The Credit Agreement with Wells Fargo Bank, National Association, replaced the company's prior loan and security agreement with BMO Harris Bank N.A. which was scheduled to mature on March 20, 2017. In connection with the refinancing, the Company will expense approximately $0.3 million of deferred financing costs related to the BMO Harris Bank N.A. agreement in the second quarter ended June 30, 2013.

The Credit Agreement related documents are attached to this Current Report on Form 8-K as Exhibits 10.1 and 10.2 and are incorporated herein by reference. The foregoing summary of the Credit Agreement is qualified in its entirety by the complete text of the Credit Agreement and Exhibits filed herewith.



Item 1.02 Termination of a Material Definitive Agreement.

The information provided in Item 1.01 of this Current Report is incorporated herein by reference



Item 2.02 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information provided in Item 1.01 of this Current Report is incorporated herein by reference

Item 9.01 Exhibits.


(d) Exhibits.



Exhibit
Number       Exhibit Description

10.1         Credit Agreement, dated as of June 28, 2013, by and among Wells Fargo,
             N.A. as agent for itself and other lenders party thereto, each of the
             lenders party thereto, Power Solutions International, Inc., The W
             Group, Inc., Power Solutions, Inc., Power Great Lakes, Inc., Auto
             Manufacturing, Inc., Torque Power Source Parts, Inc., Power
             Properties, L.L.C., Power Production, Inc., Power Global Solutions,
             Inc., PSI International, LLC and XISync LLC, and related documents.

10.2         Security Agreement dated as of June 28, 2013 by and among Wells Fargo,
             N.A. as agent for itself and other lenders party thereto, each of the
             lenders party thereto, Power Solutions International, Inc., The W
             Group, Inc., Power Solutions, Inc., Power Great Lakes, Inc., Auto
             Manufacturing, Inc., Torque Power Source Parts, Inc., Power
             Properties, L.L.C., Power Production, Inc., Power Global Solutions,
             Inc., PSI International, LLC and XISync LLC, and related documents.


  Add PSIX to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for PSIX - All Recent SEC Filings
Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.