TriMas Corp. today (Jan. 14) announced it has concluded the final step of its previously announced refinancing activities with the completion of the cash tender offer for its outstanding 9 7/8% Senior Subordinated Notes due 2012.
According to a news release, the refinancing activities for TriMas included:
- The amendment of its credit agreement to extend the maturity of $226.3 million of $252.2 million in term loans from August 2013 to December 2015, which is expected to improve the company’s financial flexibility. The maturity date and interest margins of approximately $26 million in term loans held by lenders that did not consent will remain unchanged.
- Extending the maturities of $75 million in revolving credit commitments from August 2011 to December 2013. The maturities and interest margin of $8 million in revolving credit commitments remains unchanged.
- The issuance of $250 million principal amount of 9 3/4% Senior Secured Notes due 2017, the proceeds of which, together with other available cash, were used to redeem $256 million principal amount of outstanding notes.
- A new three-year accounts receivable facility which provides committed funding of up to $75 million and is expected to provide up to $25 million in increased availability at a lower cost of funds than the 364-day accounts receivable facility that it replaces.
“The refinancing activities of the past month improve and extend TriMas’ debt maturity profile, as well as provide additional financial flexibility that allows us to continue to execute on our business plan,” commented David Wathen, TriMas president and CEO. “We will remain focused on improving our operating performance via productivity initiatives and increased cash generation, allowing us to continue our progress in reducing debt and strengthening the balance sheet. We appreciate the cooperation we have received from our lenders and other stakeholders.”
TriMas is the parent company of RV supplier Cequent Performance Products.