Power Solutions International Announces Additional $30 Million Shareholder Loan Agreement with Weichai America
WOOD DALE, Ill., April 21, 2022 (GLOBE NEWSWIRE) — Power Solutions International, Inc. (the “Company” or “PSI”) PSIX, a leader in the design, engineering and manufacturing of emission-certified engines and fuel systems, today announced that it has entered into an additional shareholder loan agreement with its majority shareholder, Weichai America Corp. (“Weichai”), dated April 20, 2022 (the “Fourth Shareholder Loan Agreement”). The fourth shareholder loan agreement, which matures on March 31, 2023, gives the company access to a credit of up to $30 million at Weichai’s discretion to supplement the company’s working capital. The Fourth Shareholder Loan Agreement is subordinated in all respects to the Company’s existing $130 million uncommitted senior secured revolving credit facility with Standard Chartered Bank (all of which was fully borrowed as of April 20, 2022). ).
Borrowings under the Fourth Shareholder Loan Agreement will bear interest at the applicable Secured Overnight Funding Rate (“SOFR”) plus 4.65% per annum. In addition, if the applicable SOFR term is negative, the annual interest rate will be deemed to be 4.65% per annum. If the interest rate of a loan is less than Weichai’s borrowing cost, the interest rate of such loan will be equal to Weichai’s borrowing cost plus 1%. As of April 20, 2022, PSI had not borrowed any funds under the fourth shareholder loan agreement.
Lance Arnett, Managing Director, said: “We are pleased with the additional liquidity this loan provides us. We appreciate Weichai’s continued support of PSI as we execute the company’s business goals and work to drive better financial results.
Additional details of the fourth shareholder loan agreement can be found in the company’s current report on Form 8-K filed with the Securities and Exchange Commission on April 21, 2022.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacturing of a wide range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to the world’s leading original equipment manufacturers and end users in the power systems, industrial and transportation end markets. The company’s unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel-agnostic strategy to run on a wide variety of fuels, including natural gas , propane, gasoline, diesel and biofuels.
PSI develops and supplies complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, primary, demand response, microgrid and utility applications. cogeneration (CHP); and industrial applications which include forklifts, agriculture and turf, arbor maintenance, industrial sweepers, aerial work platforms, irrigation pumps, ground support and construction equipment. Additionally, PSI develops and supplies powertrains specifically designed for medium-duty trucks and buses, including school and transit buses, work trucks, terminal tractors and various other professional vehicles. For more information about PSI, visit www.psiengines.com.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations regarding its prospects and opportunities. These forward-looking statements qualify for the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The Company has attempted to identify these forward-looking statements by using words such as “anticipate”, “believe”, “budget” . ,” “contemplate”, “estimate”, “expect”, “plan”, “guidance”, “may”, “outlook”, “plan”, “project”, “should”, “target”, ” will”, “would” or similar expressions, but these words are not the exclusive means of identifying such statements. Such statements are subject to a number of risks, uncertainties and assumptions that may cause that actual results, performance or achievements may differ materially from those expressed or implied by such statements.
The Company cautions that risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to: the impact of the COVID-19 pandemic 19 could have on the Company’s activities and financial results; the Company’s ability to continue as a going concern; the Company’s ability to raise additional capital if needed and its liquidity; uncertainties surrounding the Company’s ability to meet financing conditions under its financing agreements and access to capital thereunder; the potential acceleration of the maturity at any time of the loans under the Company’s senior uncommitted secured revolving credit facility by the exercise by Standard Chartered Bank of its right to demand; timing of completion of steps to address and failure to address and remedy material weaknesses; identification of additional material weaknesses or material deficiencies; risks relating to compliance with the terms and conditions of regulations with the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Northern District of Illinois (the “USAO”); variances in non-recurring expenses; risks relating to substantial costs and the diversion of staff attention and resources deployed to address internal control matters; the Company’s obligations to indemnify past and current directors and officers and certain current and former employees with respect to investigations by the SEC and the USAO Criminal Division, which will be funded by the Company with its resources existing cash flows due to the exhaustion of the insurance coverage of its key historical directors and officers; the Company’s ability to accurately forecast sales and the extent to which sales translate into recorded revenue; changes in customer demand for the Company’s products; volatility in oil and gas prices; the impact of US tariffs on imports from China on the Company’s supply chain; impact on the world economy of the war in Ukraine; disruptions to the Company’s supply chain; the impact of increased warranty costs and the Company’s ability to mitigate these costs; any delays and challenges in recruiting key employees in accordance with the Company’s plans; any adverse impact of the delisting of the par value of the Company’s common stock of $0.001 from the NASDAQ stock market and any delay and difficulty in obtaining a re-listing; and the risks and uncertainties described in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and subsequent filings by the Company with the SEC.
The Company’s forward-looking statements are made as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statement, whether as a result of new information, future events or otherwise.
Power Solutions International, Inc..
Investor Relations Director
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