AirBoss of America (ABSSF) has entered into new senior secured credit facilities consisting of aggregate financing of up to $180 million, which are replacing its current senior secured revolving credit facilities, and an update on its previously announced strategic transition. The new credit facilities consist of a revolving asset-based credit facility co-arranged by The Toronto-Dominion Bank and Canadian Imperial Bank of Commerce and a non-revolving term loan facility provided by Great Rock Capital Partners The commitments under the ABL Facility, when fully syndicated, are expected to be US$125 million and the Term Facility is for US$55 million. The maturity date under both facilities is November 29, 2027. Additional key terms of the new credit facilities include the following: Reducing the maximum applicable margin on revolving debt from 450 basis points to 225 basis points; Dividend increases above current levels are subject to certain financial conditions; Meeting certain minimum adjusted EBITDA and liquidity requirements; and Covenants related to annual capital expenditures. The Company continues to work diligently on its strategic review, evaluating a range of potential opportunities to enhance shareholder value. While no specific transactions are imminent or expected to occur in the near-term, AirBoss continues to explore potential strategic divestitures as well as the potential monetization of its real estate assets. There can be no assurance that this ongoing evaluation of strategic opportunities will result in the successful completion of any transaction, nor any assurance as to the timing or nature of any outcomes.
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