(Source: PRNewswire-FirstCall)
NEW ALBANY, Ohio, Aug. 4 /PRNewswire-FirstCall/ -- Commercial Vehicle Group, Inc. today announced it has completed a private exchange with certain holders of its 8.0% Senior Notes due 2013 (the "8.0% Notes") and entered into a new discounted Second Lien Term Loan (the "Second Lien Term Loan"). The Company also announced it has entered into a second amendment (the "Second Amendment") to its asset based Loan and Security Agreement (the "Credit Facility") with Bank of America, N.A.
Pursuant to the terms of the exchange, certain bondholders of the Company's 8.0% Notes agreed to exchange approximately $52.2 million of 8.0% Notes for units consisting of approximately $42.1 million of new 11%/13% Third Lien Senior Secured Notes due February 2013 (the "Third Lien Notes") and warrants to purchase 745 thousand shares of the Company's common stock at an exercise price of $0.35 per share. Interest on the Third Lien Notes will be paid-in-kind through February 15, 2010 and may, at the Company's option, be paid-in-kind through February 15, 2011 at an annual rate of 13.0%. Thereafter, interest will be paid in cash at an annual rate of 11.0%.
In addition, the Company entered into a new $16.8 million Second Lien Term Loan with certain of the exchanging bondholders for proceeds of approximately $13.1 million (representing a discount of approximately 21.9%). The Company will use these proceeds to reduce borrowings under the Credit Facility and to pay related transaction fees and expenses. The Second Lien Term Loan is due November 2012, and interest is payable in cash at an annual rate of 15.0%.
In connection with the exchange and the Second Lien Term Loan, the Company entered into the Second Amendment to its asset based Credit Facility. The Second Amendment includes a reduction in size of the commitment from $47.5 million to $37.5 million and provides that the Company need not comply with any minimum EBITDA requirement or fixed charge coverage ratio requirement for as long as the Company maintains at least $15.0 million of borrowing availability under the Credit Facility. If borrowing availability is less than $15.0 million for three consecutive business days, or less than $12.5 million on any one day, the Company will be required to comply with revised minimum EBITDA requirements for 2009 as set forth in the Second Amendment and a fixed charge coverage ratio for fiscal quarters ending on or after March 31, 2010, and will be required to continue to comply with these requirements until the Company has borrowing availability greater than $15.0 million for 60 consecutive days.
