PSI Replaces $135M Credit Facility with $220M Committed Revolver at Lower Spread

summarizeSummary

PSI closed a $220M committed revolving credit facility, up from $135M, with a lower borrowing spread and longer maturity. The new facility replaces the prior Standard Chartered facility, which was repaid in full. The lenders are HSBC Bank USA as administrative agent, Australia and New Zealand Banking Group, Bank of China Chicago Branch, and BNP Paribas.

check_boxKey Events · Financing and Capital Events · PSIX

• Updated · Sep 30 · GlobeNewswire

  New $220M Committed Revolver with HSBC as Administrative Agent

  PSI entered into a $220 million committed revolving credit facility with HSBC Bank USA as administrative agent, replacing the prior $135 million facility with Standard Chartered Bank. The lenders are HSBC Bank USA, Australia and New Zealand Banking Group, Bank of China Chicago Branch, and BNP Paribas. The new facility matures September 25, 2029.

• Updated · Sep 30 · GlobeNewswire

  Lower Borrowing Spread with Interest Rate Options

  Borrowings under the new facility bear interest, at the Company's option, at the applicable Term Secured Overnight Financing Rate (SOFR) plus 1.80% per annum or at an alternate base rate plus an applicable margin, down from SOFR + 2.60% under the prior facility — an 80 basis point reduction that lowers interest expense on drawn balances.

• Initial Draw and Prior Facility Repayment

  PSI borrowed $35.0 million at closing and used $15.1 million to repay the prior facility in full, including $15.0 million of principal plus accrued interest and fees. No early termination penalties were incurred.

• Financial Covenants

  The facility requires a consolidated interest coverage ratio of at least 3.00x and a consolidated leverage ratio of no more than 3.00x, each tested quarterly. Breach would constitute an event of default.

auto_awesomeAnalysis · PSIX · Technology

On September 25, 2026, Power Solutions International closed a new $220 million committed revolving credit facility, replacing its prior $135 million facility with Standard Chartered Bank. The new facility, led by HSBC Bank USA as administrative agent with Australia and New Zealand Banking Group, Bank of China Chicago Branch, and BNP Paribas, extends maturity to September 2029 and cuts the borrowing spread from SOFR + 2.60% to SOFR + 1.80%. Borrowings bear interest, at the Company's option, at the applicable Term Secured Overnight Financing Rate (SOFR) plus 1.80% per annum or at an alternate base rate plus an applicable margin. The company drew $35 million at closing, using $15.1 million to repay the old facility in full. The larger commitment and lower pricing strengthen liquidity and reduce interest expense, but the facility is secured by substantially all assets and carries financial covenants (interest coverage ≥ 3.00x, leverage ≤ 3.00x) that constrain future borrowing flexibility. The change-of-control provision tied to Weichai's ownership stake adds a governance dimension worth noting.