CVG Announces Successful Completion of Debt Refinancing Transactions
Commercial Vehicle Group (NASDAQ: CVGI) has successfully completed a significant debt refinancing transaction, securing $210 million in senior secured credit facilities. The package consists of a $95 million senior secured term loan with TCW Asset Management Company LLC and a $115 million senior secured asset-based revolving credit facility with Bank of America.
The refinancing extends debt maturity to 2030 and includes the following key terms: The Term Loan features tiered interest rates from SOFR plus 8.75% to 10.75% based on leverage ratios, with an initial rate of SOFR plus 9.75%. The ABL Facility includes a $100 million US subfacility and a $15 million UK subfacility, with interest rates ranging from 1.50% to 2.00% above SOFR, SONIA, or EURIBOR.
As part of the transaction, TCW Group received five-year warrants to purchase up to 3,934,776 shares of CVGI's common stock in two equal tranches, with exercise prices of $1.58 and $2.07 respectively. The company maintains the right to repurchase up to 50% of each warrant tranche within four years.
Commercial Vehicle Group (NASDAQ: CVGI) ha completato con successo una significativa operazione di rifinanziamento del debito, assicurandosi 210 milioni di dollari in finanziamenti senior garantiti. Il pacchetto comprende un prestito senior garantito a termine da 95 milioni di dollari con TCW Asset Management Company LLC e una linea di credito revolving garantita basata su asset da 115 milioni di dollari con Bank of America.
Il rifinanziamento estende la scadenza del debito al 2030 e include i seguenti termini chiave: il prestito a termine prevede tassi di interesse a scaglioni da SOFR più 8,75% a 10,75% in base ai rapporti di leva finanziaria, con un tasso iniziale di SOFR più 9,75%. La linea ABL include una sotto-linea da 100 milioni di dollari negli Stati Uniti e una sotto-linea da 15 milioni di dollari nel Regno Unito, con tassi di interesse che variano dall'1,50% al 2,00% sopra SOFR, SONIA o EURIBOR.
Come parte della transazione, TCW Group ha ricevuto warrant quinquennali per acquistare fino a 3.934.776 azioni ordinarie di CVGI in due tranche uguali, con prezzi di esercizio rispettivamente di 1,58 e 2,07 dollari. La società mantiene il diritto di riacquistare fino al 50% di ciascuna tranche di warrant entro quattro anni.
Commercial Vehicle Group (NASDAQ: CVGI) ha completado con éxito una importante operación de refinanciación de deuda, asegurando 210 millones de dólares en facilidades de crédito garantizadas senior. El paquete consta de un préstamo a plazo garantizado senior de 95 millones de dólares con TCW Asset Management Company LLC y una línea de crédito revolvente garantizada basada en activos de 115 millones de dólares con Bank of America.
La refinanciación extiende el vencimiento de la deuda hasta 2030 e incluye los siguientes términos clave: El préstamo a plazo presenta tasas de interés escalonadas desde SOFR más 8.75% hasta 10.75% según los ratios de apalancamiento, con una tasa inicial de SOFR más 9.75%. La facilidad ABL incluye una subfacilidad de 100 millones de dólares en EE. UU. y una subfacilidad de 15 millones de dólares en Reino Unido, con tasas de interés que varían entre 1.50% y 2.00% sobre SOFR, SONIA o EURIBOR.
Como parte de la transacción, TCW Group recibió warrants a cinco años para comprar hasta 3,934,776 acciones comunes de CVGI en dos tramos iguales, con precios de ejercicio de 1.58 y 2.07 dólares respectivamente. La compañía mantiene el derecho de recomprar hasta el 50% de cada tramo de warrants dentro de cuatro años.
Commercial Vehicle Group (NASDAQ: CVGI)는 성공적으로 중요한 부채 재융자 거래를 완료하여 2억 1천만 달러의 선순위 담보 신용 시설을 확보했습니다. 이 패키지는 TCW Asset Management Company LLC와의 9,500만 달러 선순위 담보 만기 대출과 Bank of America와의 1억 1,500만 달러 선순위 담보 자산 기반 회전 신용 시설로 구성되어 있습니다.
이번 재융자는 부채 만기를 2030년까지 연장하며 다음과 같은 주요 조건을 포함합니다: 만기 대출은 레버리지 비율에 따라 SOFR 플러스 8.75%에서 10.75%까지 계층화된 이자율을 제공하며, 초기 이자율은 SOFR 플러스 9.75%입니다. ABL 시설은 1억 달러 미국 서브시설과 1,500만 달러 영국 서브시설을 포함하며, 이자율은 SOFR, SONIA 또는 EURIBOR 대비 1.50%에서 2.00% 사이입니다.
거래의 일환으로 TCW 그룹은 CVGI 보통주 3,934,776주를 두 개의 동일한 트랜치로 나누어 구매할 수 있는 5년 만기 워런트를 받았으며, 행사가격은 각각 1.58달러와 2.07달러입니다. 회사는 각 워런트 트랜치의 최대 50%를 4년 이내에 재매입할 권리를 보유합니다.
Commercial Vehicle Group (NASDAQ : CVGI) a réussi à finaliser une importante opération de refinancement de sa dette, sécurisant 210 millions de dollars de facilités de crédit senior garanties. Le package comprend un prêt senior garanti à terme de 95 millions de dollars avec TCW Asset Management Company LLC et une ligne de crédit renouvelable garantie basée sur les actifs de 115 millions de dollars avec Bank of America.
Le refinancement prolonge l’échéance de la dette jusqu’en 2030 et inclut les conditions clés suivantes : Le prêt à terme présente des taux d’intérêt échelonnés allant de SOFR plus 8,75 % à 10,75 % selon les ratios d’endettement, avec un taux initial de SOFR plus 9,75 %. La facilité ABL comprend une sous-facilité américaine de 100 millions de dollars et une sous-facilité britannique de 15 millions de dollars, avec des taux d’intérêt allant de 1,50 % à 2,00 % au-dessus de SOFR, SONIA ou EURIBOR.
Dans le cadre de la transaction, le groupe TCW a reçu des bons de souscription d’une durée de cinq ans pour acheter jusqu’à 3 934 776 actions ordinaires de CVGI en deux tranches égales, avec des prix d’exercice respectifs de 1,58 et 2,07 dollars. La société conserve le droit de racheter jusqu’à 50 % de chaque tranche de bons de souscription dans un délai de quatre ans.
Commercial Vehicle Group (NASDAQ: CVGI) hat erfolgreich eine bedeutende Schuldenrefinanzierung abgeschlossen und sich 210 Millionen US-Dollar an vorrangigen besicherten Kreditfazilitäten gesichert. Das Paket besteht aus einem 95 Millionen US-Dollar vorrangigen besicherten Terminkredit mit TCW Asset Management Company LLC und einer 115 Millionen US-Dollar vorrangigen besicherten revolvierenden Kreditfazilität mit der Bank of America.
Die Refinanzierung verlängert die Fälligkeit der Schulden bis 2030 und umfasst folgende wichtige Bedingungen: Der Terminkredit weist gestaffelte Zinssätze von SOFR plus 8,75 % bis 10,75 % basierend auf Verschuldungsgraden auf, mit einem Anfangszins von SOFR plus 9,75 %. Die ABL-Fazilität beinhaltet eine 100-Millionen-US-Dollar-US-Subfazilität und eine 15-Millionen-US-Dollar-UK-Subfazilität, mit Zinssätzen zwischen 1,50 % und 2,00 % über SOFR, SONIA oder EURIBOR.
Im Rahmen der Transaktion erhielt die TCW Group Fünfjahres-Warrants zum Kauf von bis zu 3.934.776 Aktien der CVGI-Stammaktien in zwei gleichen Tranchen, mit Ausübungspreisen von jeweils 1,58 und 2,07 US-Dollar. Das Unternehmen behält sich das Recht vor, bis zu 50 % jeder Warrant-Tranche innerhalb von vier Jahren zurückzukaufen.
- None.
- High interest costs with Term Loan rates ranging from SOFR+8.75% to SOFR+10.75%
- Significant warrant dilution with 3,934,776 shares subject to warrants
- Strict financial covenants including leverage ratios and capital expenditure limits
- Prepayment penalties of up to 4% until 2027
- Mandatory excess cash flow sweep requirement on Term Loan
Insights
CVG's debt refinancing extends maturity to 2030 but comes with higher interest rates and equity dilution through warrants.
CVG has successfully refinanced
The
Most concerning is the dilutive impact of nearly 4 million warrants granted to TCW Group with exercise prices of
This refinancing appears to be done from a position of limited options, with terms that impose substantial financial constraints and shareholder dilution in exchange for maturity extension. The high interest rates and strict covenants reflect creditors' current risk assessment of CVG's financial position.
Refinancing extends maturity to 2030 and increases flexibility
NEW ALBANY, OHIO, June 30, 2025 (GLOBE NEWSWIRE) -- Commercial Vehicle Group (together with its subsidiaries, the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, today announced that on June 27, 2025 it had closed on
Andy Cheung, Chief Financial Officer, said, “We are pleased to announce the successful refinancing of our debt facilities maturing in 2027, which marks an important milestone as we continue to advance our strategic operational initiatives. The new facilities provide a long runway of funding certainty and increased financial flexibility as we look to drive further cost reductions, margin improvement, and overall operational efficiency. Moving forward, we remain committed to deleveraging the balance sheet through free cash generation and disciplined debt paydown.”
Term Loan of
Obligations under the Term Loan will mature on June 27, 2030.
The Term Loan will have tiered interest costs based on the consolidated total leverage ratio ranging from SOFR plus
Until June 28, 2028, voluntary prepayments of the Term Loan are subject to a premium, calculated as a percentage of the obligations so prepaid under the Term Loan, equal to (x) from June 27, 2025 until June 27, 2027,
The Term Loan will be subject to certain financial covenants:
- a consolidated total leverage ratio covenant, tested quarterly, which will be initially set at 7.25x, with step-downs to 6.50x at December 31, 2025, 6.00x at March 31, 2026, 5.25x at June 30, 2026, and additional quarterly 0.25x step-downs until a ratio of 4.00x applicable from and after September 30, 2027.
- a maximum consolidated capital expenditure covenant, capped at
$20 million in any fiscal year, and a sublimit of$10 million for foreign capital expenditures. - a 30-day rolling minimum average liquidity requirement of
$15 million .
ABL Facility of
Obligations under the ABL Facility will mature on June 27, 2030, springing to the date that is 91 days prior to the maturity of the Term Loan.
The initial principal amount of the ABL Facility is
The ABL Facility will be available in US Dollars, Pounds Sterling and Euros, and borrowings will accrue interest at SOFR, SONIA or EURIBOR, with margins based on average daily availability ranging from
The Company will be required to comply with a maximum fixed charge coverage ratio of 1.00x, tested quarterly, during any trigger period. Such period shall be triggered upon availability dropping below the greater of
Warrants
In connection with the financing, TCW Group affiliates received five-year warrants for the purchase of up to 3,934,776 shares of the company’s common stock, issued in two equal tranches. The tranches have an exercise price of
The Company will file a Current Report on Form 8-K with the United States Securities Exchange Commission that will contain further details regarding the terms of the of the transactions.
Company Contact
Andy Cheung
Chief Financial Officer
CVG
IR@cvgrp.com
Investor Relations Contact
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com
About CVG
CVG is a global provider of systems, assemblies and components to the global commercial vehicle market and the electric vehicle market. We deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction and agricultural equipment business, the Company’s prospects in the wire harness, and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
FAQ
What are the key terms of CVGI's new debt refinancing?
What interest rates will CVGI pay on its new Term Loan?
How many warrants did CVGI issue in the refinancing?
What are the financial covenants for CVGI's new Term Loan?
How is CVGI's new ABL Facility structured?
What are the prepayment terms for CVGI's Term Loan?
