Power Solutions International, Inc. Secured $135 Million Long-Term Committed Credit Facility to Support Strategic Growth
WOOD DALE, Ill., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. ("PSI" or the "Company") is excited to announce a significant financial milestone. On July 30, 2025, PSI entered into a Second Amendment (the "Amendment") to its existing Uncommitted Revolving Credit Agreement with Standard Chartered Bank, acting as administrative agent alongside participating lenders (collectively, the "Lenders"). This newly Amended Credit Agreement increases PSI's committed borrowing capacity to $135.0 million, providing enhanced flexibility and strategic firepower to support our continued growth and innovation. The agreement now extends through July 30, 2027, solidifying our financial foundation for the next two years.
Dino Xykis, Chief Executive Officer, commented, "This milestone is a powerful affirmation of the trust and confidence our financial partners have in PSI's strong operational performance, disciplined financial management, compelling results, and our long-term strategy. The expanded and extended credit facility reinforces our robust capital structure, with the backing of world-class financial institutions and the commitment of our talented team, PSI is well-positioned to deliver sustainable value creation for all stakeholders including our customers, shareholders, employees, and strategic partners."
Kenneth Li, Chief Financial Officer, stated, "The Company has achieved profitability, has been generating positive cash flows from operating activities for several years, and has successfully amended the Revolving Long Term Credit Agreement. The Company has concluded that its existing cash and cash equivalents and cash from operations will be sufficient for the Company to continue as a going concern for at least twelve months from the issuance of these condensed consolidated financial statements. As a result, the Company released valuation allowance previously recorded against its deferred tax assets, and increased net income and stockholders' equity $29.2 million from the tax benefits as of June 30, 2025."
The Amended Credit Agreement remains subject to customary events of default and covenants, including minimum adjusted EBITDA, minimum interest coverage ratio and maximum gross leverage ratio covenants. Borrowings under the Amended Credit Agreement will incur interest at the applicable Secured Overnight Financing Rate ("SOFR") plus 2.10% per annum. In the event the Company's majority shareholder, Weichai America Corp. ("Weichai") holds less than fifty percent (50%) of the common equity of the Company, the interest rate under the Amended Credit Agreement will increase to the applicable SOFR plus 2.60% per annum.
The obligations under the Amended Credit Agreement remain unconditionally guaranteed, on a joint ...
