NN Announces Successful Refinancing
NN (NASDAQ: NNBR) has successfully completed a two-step debt refinancing initiative. The first step, previously announced in January 2025, involves a $65 million ABL facility with PNC Bank featuring a five-year maturity to 2030, improved collateral, and a $15 million capex line at slightly lower rates. The second step introduces a new partnership with Marathon Asset Management, providing a $118 million term loan facility extending to 2030 with improved leverage covenants and a $10 million add-on feature.
The company's transformation goals include:
- Organic growth leveraging $340 million installed asset base
- Systematic cost reduction through unified operations
- Strategic M&A opportunities for expansion
NN (NASDAQ: NNBR) ha completato con successo un'iniziativa di rifinanziamento del debito in due fasi. La prima fase, annunciata a gennaio 2025, prevede una linea di credito ABL da 65 milioni di dollari con PNC Bank, con scadenza quinquennale fino al 2030, garanzie migliorate e una linea capex da 15 milioni a tassi leggermente più bassi. La seconda fase introduce una nuova partnership con Marathon Asset Management, che offre una linea di prestito a termine da 118 milioni di dollari fino al 2030, con covenant di leva finanziaria migliorati e una funzionalità aggiuntiva da 10 milioni di dollari.
Gli obiettivi di trasformazione dell'azienda includono:
- Crescita organica sfruttando una base di asset installati da 340 milioni di dollari
- Riduzione sistematica dei costi attraverso operazioni unificate
- Opportunità strategiche di fusioni e acquisizioni per l'espansione
NN (NASDAQ: NNBR) ha completado con éxito una iniciativa de refinanciamiento de deuda en dos etapas. La primera etapa, anunciada en enero de 2025, consiste en una línea ABL de 65 millones de dólares con PNC Bank con vencimiento a cinco años hasta 2030, garantías mejoradas y una línea capex de 15 millones a tasas ligeramente inferiores. La segunda etapa introduce una nueva asociación con Marathon Asset Management, proporcionando una línea de préstamo a plazo de 118 millones de dólares hasta 2030 con convenios de apalancamiento mejorados y una función adicional de 10 millones.
Los objetivos de transformación de la empresa incluyen:
- Crecimiento orgánico aprovechando una base de activos instalados de 340 millones de dólares
- Reducción sistemática de costos mediante operaciones unificadas
- Oportunidades estratégicas de fusiones y adquisiciones para la expansión
NN (NASDAQ: NNBR)는 성공적으로 2단계 부채 재융자 계획을 완료했습니다. 2025년 1월에 발표된 첫 번째 단계는 PNC 은행과의 6,500만 달러 ABL 시설로, 2030년까지 5년 만기, 개선된 담보, 그리고 약간 낮은 금리의 1,500만 달러 자본적 지출 라인을 포함합니다. 두 번째 단계는 Marathon Asset Management와의 새로운 파트너십을 통해 1억 1,800만 달러의 만기 2030년까지 연장된 기간 대출 시설을 제공하며, 개선된 레버리지 계약 조건과 1,000만 달러 추가 기능을 포함합니다.
회사의 전환 목표는 다음과 같습니다:
- 3억 4천만 달러 규모의 설치 자산 기반을 활용한 유기적 성장
- 통합 운영을 통한 체계적인 비용 절감
- 확장을 위한 전략적 인수합병 기회
NN (NASDAQ : NNBR) a réussi à mener à bien une initiative de refinancement de dette en deux étapes. La première étape, annoncée en janvier 2025, comprend une facilité ABL de 65 millions de dollars avec PNC Bank, d'une durée de cinq ans jusqu'en 2030, avec des garanties améliorées et une ligne capex de 15 millions à des taux légèrement inférieurs. La deuxième étape introduit un nouveau partenariat avec Marathon Asset Management, offrant une facilité de prêt à terme de 118 millions de dollars jusqu'en 2030, avec des clauses de levier améliorées et une option supplémentaire de 10 millions.
Les objectifs de transformation de l'entreprise incluent :
- Croissance organique exploitant une base d'actifs installés de 340 millions de dollars
- Réduction systématique des coûts grâce à des opérations unifiées
- Opportunités stratégiques de fusions et acquisitions pour l'expansion
NN (NASDAQ: NNBR) hat eine zweistufige Schuldenrefinanzierungsinitiative erfolgreich abgeschlossen. Der erste Schritt, der bereits im Januar 2025 angekündigt wurde, umfasst eine ABL-Fazilität über 65 Millionen US-Dollar mit der PNC Bank mit einer Laufzeit von fünf Jahren bis 2030, verbesserten Sicherheiten und eine Capex-Linie über 15 Millionen zu leicht niedrigeren Zinssätzen. Der zweite Schritt führt eine neue Partnerschaft mit Marathon Asset Management ein, die eine Term Loan-Fazilität über 118 Millionen US-Dollar bis 2030 mit verbesserten Verschuldungsklauseln und einer Zusatzfunktion von 10 Millionen bietet.
Die Transformationsziele des Unternehmens umfassen:
- Organisches Wachstum durch Nutzung eines installierten Anlagenbestands von 340 Millionen US-Dollar
- Systematische Kostensenkung durch einheitliche Abläufe
- Strategische M&A-Möglichkeiten zur Expansion
- Secured $183M total refinancing ($65M ABL + $118M term loan)
- Extended debt maturity to 2030, improving long-term stability
- Obtained improved collateral terms and leverage covenants
- Gained additional $25M in financing flexibility ($15M capex + $10M add-on)
- Secured lower rates on ABL facility
- Higher interest rates on new term loan compared to previous facility
- Increased debt exposure with additional borrowing features
Insights
NN's refinancing secures 5-year runway with improved covenants and liquidity, strengthening financial flexibility despite higher term loan rates.
NN's two-step debt refinancing represents a significant financial milestone that addresses near-term capital structure concerns. The company has successfully extended both facilities to 2030, providing a crucial five-year operational runway. The first component—a
The financial implications are substantial. With a market capitalization of just
Marathon's involvement is particularly notable. As a
This restructuring doesn't reduce principal debt but provides the strategic flexibility and timeline needed to implement fundamental operational improvements. Management's continued focus on further balance sheet optimization suggests recognition that the transformation journey remains ongoing, but this refinancing represents a critical enabling foundation.
Provides company with the continued ability to move quickly and decisively
CHARLOTTE, N.C., April 16, 2025 (GLOBE NEWSWIRE) -- NN (NASDAQ: NNBR) today announced the successful completion of its debt refinancing initiative, accomplished in two steps.
Step One - ABL (Asset Backed Loan) Refinancing – This refinancing with PNC Bank, N.A. was previously announced in January 2025:
$65 million facility- Five-year maturity to 2030
- Improved collateral and borrowing amounts
$15 million capex line at ABL rates- Slightly lower rates than previous ABL
Step Two - Term Loan Refinancing – New refinancing with Marathon Asset Management:
$118 million facility- Five-year maturity to 2030
- Improved leverage and liquidity covenants
$10 million add-on feature for certain borrowing- Slightly higher rates than previous Term Loan
“We are pleased to announce the successful completion of our two-step ABL and Term Loan refinancing program. We are announcing a new term loan partner – Marathon Asset Management - and a new five-year term loan. This is an important milestone and allows us to continue the aggressive value advancement of NN,” said Harold Bevis, President and Chief Executive Officer of NN, Inc. “The new term loan has multiple improved operational features that will enable us to improve and grow faster. This transaction, combined with the successful refinancing of our ABL in January, sets the stage for the next chapter of NN.”
Randy Raisman, Head of US Opportunistic Credit at
Bevis concluded, “Our primary transformation goals are three-fold.
- Organically grow NN by leveraging its
$340 million installed base of assets and 45 years of know-how. - Systematically lower costs by creating one unified, shared team of experts operating out of a simplified footprint.
- Pursue chunky M&A when the time and opportunity is right to upsize.
Our new capital structure allows us to aggressively move forward with our transformation plan. We look forward to delivering higher results.”
“We continue to evaluate additional opportunities to improve our balance sheet and further optimize our capital base. We are thankful to be partnered with our new lenders - PNC and Marathon Asset Management - and look forward to utilizing the flexibility afforded under our new ABL and term loan to accelerate the pace of our transformation.”
The company will file a Current Report on Form 8-K with the United States Securities and Exchange Commission that will contain further details regarding the terms of the transaction.
About NN
NN is a global industrial company that combines advanced engineering and production capabilities to deliver solutions for high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Asia, Europe, and South America. For more information, visit www.nninc.com.
FORWARD-LOOKING STATEMENTS
Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the “Company”) based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “growth,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project,” “trajectory” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.
Investor Relations:
Joseph Caminiti or Stephen Poe, Investors
NNBR@alpha-ir.com
312-445-2870
FAQ
What are the key terms of NNBR's 2025 debt refinancing program?
How will the 2025 refinancing impact NNBR's transformation strategy?
What are the differences between NNBR's new and previous loan terms?
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