Power Solutions International, Inc. Secured $135 Million Long-Term Committed Credit Facility to Support Strategic Growth
Power Solutions International (PSIX) has secured a significant financial milestone by amending its credit agreement with Standard Chartered Bank, increasing its committed borrowing capacity to $135.0 million. The amended facility extends through July 30, 2027, with interest rates at SOFR plus 2.10% per annum.
The company has demonstrated strong financial performance, achieving profitability and generating positive cash flows from operations. As a result, PSI released a $29.2 million valuation allowance previously recorded against deferred tax assets, boosting net income and stockholders' equity as of June 30, 2025.
The credit facility is secured by substantially all company assets and includes customary covenants such as minimum adjusted EBITDA and leverage ratio requirements.
Power Solutions International (PSIX) ha raggiunto un importante traguardo finanziario modificando il proprio accordo di credito con Standard Chartered Bank, aumentando la capacità di indebitamento impegnata a 135,0 milioni di dollari. La linea rinegoziata è valida fino al 30 luglio 2027, con un tasso d'interesse pari a SOFR più il 2,10% annuo.
L'azienda ha mostrato solide performance finanziarie, conseguendo redditività e generando flussi di cassa operativi positivi. Di conseguenza, PSI ha stornato una riserva di valutazione di 29,2 milioni di dollari precedentemente iscritta a fronte delle imposte differite, incrementando l'utile netto e il patrimonio netto al 30 giugno 2025.
La linea di credito è garantita da sostanzialmente tutti gli asset aziendali e include covenant consueti, come requisiti minimi di EBITDA rettificato e di rapporto di indebitamento.
Power Solutions International (PSIX) ha logrado un hito financiero relevante al modificar su acuerdo de crédito con Standard Chartered Bank, aumentando su capacidad de endeudamiento comprometida a 135,0 millones de dólares. La facilidad modificada se extiende hasta el 30 de julio de 2027, con tasas de interés de SOFR más 2,10% anual.
La compañía ha mostrado un sólido desempeño financiero, alcanzando rentabilidad y generando flujos de caja operativos positivos. Como resultado, PSI revirtió una provisión por valoración de 29,2 millones de dólares que estaba registrada contra activos por impuestos diferidos, lo que aumentó el resultado neto y el patrimonio de los accionistas al 30 de junio de 2025.
La línea de crédito está garantizada por prácticamente todos los activos de la empresa e incluye convenios habituales, como requisitos mínimos de EBITDA ajustado y de ratio de apalancamiento.
Power Solutions International (PSIX)는 Standard Chartered Bank와의 신용계약을 개정하여 약정 차입 한도를 미화 1억3500만 달러로 늘리며 중요한 재무적 이정표를 달성했습니다. 개정된 시설의 만기는 2027년 7월 30일까지이며, 금리는 SOFR에 연 2.10%를 더한 수준입니다.
회사는 수익성을 확보하고 영업활동에서 긍정적인 현금흐름을 창출하는 등 견조한 재무 실적을 보였습니다. 이에 따라 PSI는 이전에 이연법인세자산에 대해 계상했던 미화 2,920만 달러의 평가충당금을 환입하여 2025년 6월 30일 기준 순이익과 자본을 늘렸습니다.
이 신용시설은 사실상 모든 회사 자산을 담보로 하며, 조정 EBITDA의 최소 수준 및 레버리지 비율 요건과 같은 일반적인 코벤언트를 포함합니다.
Power Solutions International (PSIX) a franchi une étape financière importante en modifiant son accord de crédit avec Standard Chartered Bank, portant sa capacité d'emprunt engagée à 135,0 millions de dollars. La facilité modifiée court jusqu'au 30 juillet 2027, avec un taux d'intérêt équivalant à SOFR plus 2,10% par an.
La société a affiché de solides performances financières, devenant rentable et générant des flux de trésorerie opérationnels positifs. En conséquence, PSI a annulé une provision pour dépréciation de 29,2 millions de dollars précédemment comptabilisée sur les actifs d'impôts différés, ce qui a accru le résultat net et les capitaux propres au 30 juin 2025.
La facilité de crédit est garantie par l'essentiel des actifs de la société et comprend des engagements habituels, tels que des exigences minimales d'EBITDA ajusté et de ratio d'endettement.
Power Solutions International (PSIX) hat einen bedeutsamen finanziellen Meilenstein erreicht, indem es seine Kreditvereinbarung mit Standard Chartered Bank geändert und die zugesagte Kreditlinie auf 135,0 Millionen US-Dollar erhöht hat. Die angepasste Fazilität läuft bis zum 30. Juli 2027 und hat einen Zinssatz von SOFR zuzüglich 2,10% p.a.
Das Unternehmen weist eine starke Finanzleistung auf, erzielte Gewinne und generierte positive Cashflows aus dem operativen Geschäft. Infolgedessen hat PSI eine zuvor gegen latente Steueransprüche gebildete Wertberichtigung in Höhe von 29,2 Millionen US-Dollar freigegeben, was den Nettogewinn und das Eigenkapital zum 30. Juni 2025 erhöht hat.
Die Kreditfazilität ist durch im Wesentlichen alle Unternehmenswerte besichert und enthält übliche Auflagen wie Mindestanforderungen an das bereinigte EBITDA und an die Verschuldungskennziffer.
- Secured increased credit facility of $135.0 million, providing enhanced financial flexibility
- Extended credit agreement through July 30, 2027, ensuring long-term financial stability
- Released $29.2 million in tax benefits, improving net income and stockholders' equity
- Company achieving profitability with positive cash flows from operations
- Interest rate will increase by 0.50% if Weichai's ownership falls below 50%
- Credit facility subject to restrictive covenants including minimum EBITDA and leverage ratios
Insights
PSI secured $135M credit facility, extending financial flexibility through 2027 and released $29.2M in tax benefits, strengthening its financial position.
The new $135 million committed credit facility represents a meaningful enhancement to PSI's financial structure. This amendment transforms their previous uncommitted revolving credit agreement into a committed facility with a two-year term through July 30, 2027. The distinction between uncommitted and committed is significant - the latter provides guaranteed access to capital, crucial for executing strategic initiatives with confidence.
The credit terms appear favorable with a SOFR plus 2.10% interest rate (increasing to SOFR plus 2.60% if majority shareholder Weichai's ownership falls below 50%). These terms suggest lenders view PSI as relatively low-risk, reflecting their improved financial position.
Particularly noteworthy is the company's release of the $29.2 million valuation allowance against deferred tax assets, which directly increases net income and strengthens the balance sheet. This accounting change signals management's confidence in sustainable profitability, as such releases typically occur only when a company has demonstrated consistent profitability and expects it to continue.
The CFO's statement about achieving profitability and generating positive operating cash flows "for several years" confirms a fundamental improvement in PSI's business performance. The facility's financial covenants (minimum adjusted EBITDA, interest coverage ratio, and maximum leverage ratio) provide a framework for maintaining fiscal discipline.
The company also paid off its outstanding debt under the Shareholder's Loan Agreement with Weichai prior to this amendment, potentially reducing dependency on its majority shareholder while maintaining strong backing through traditional banking relationships.
WOOD DALE, Ill., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (“PSI” or the “Company”) is excited to announce a significant financial milestone. On July 30, 2025, PSI entered into a Second Amendment (the “Amendment”) to its existing Uncommitted Revolving Credit Agreement with Standard Chartered Bank, acting as administrative agent alongside participating lenders (collectively, the “Lenders”). This newly Amended Credit Agreement increases PSI’s committed borrowing capacity to
Dino Xykis, Chief Executive Officer, commented, “This milestone is a powerful affirmation of the trust and confidence our financial partners have in PSI’s strong operational performance, disciplined financial management, compelling results, and our long-term strategy. The expanded and extended credit facility reinforces our robust capital structure, with the backing of world-class financial institutions and the commitment of our talented team, PSI is well-positioned to deliver sustainable value creation for all stakeholders including our customers, shareholders, employees, and strategic partners.”
Kenneth Li, Chief Financial Officer, stated, “The Company has achieved profitability, has been generating positive cash flows from operating activities for several years, and has successfully amended the Revolving Long Term Credit Agreement. The Company has concluded that its existing cash and cash equivalents and cash from operations will be sufficient for the Company to continue as a going concern for at least twelve months from the issuance of these condensed consolidated financial statements. As a result, the Company released valuation allowance previously recorded against its deferred tax assets, and increased net income and stockholders’ equity
The Amended Credit Agreement remains subject to customary events of default and covenants, including minimum adjusted EBITDA, minimum interest coverage ratio and maximum gross leverage ratio covenants. Borrowings under the Amended Credit Agreement will incur interest at the applicable Secured Overnight Financing Rate (“SOFR”) plus
The obligations under the Amended Credit Agreement remain unconditionally guaranteed, on a joint and several basis, by certain wholly-owned, existing and subsequently acquired or formed direct and indirect domestic subsidiaries of the Company, subject to customary exceptions. The obligations under the Amended Credit Agreement remain secured by substantially all assets of the Company and the Company’s wholly-owned subsidiaries.
Prior to entering into the Amendment, the Company paid all outstanding borrowings, including principal and interest, under the Shareholder’s Loan Agreement, dated as of August 30, 2024 by and between the Company and Weichai (the “Shareholder’s Loan Agreement”).
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of a broad range of advanced, emission-certified engines and power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers and end-user customers within the power systems, industrial and transportation end markets. The Company’s unique in-house design, prototyping, engineering and testing capabilities allow PSI to customize clean, high-performance engines using a fuel agnostic strategy to run on a wide variety of fuels, including natural gas, propane, gasoline, diesel and biofuels.
PSI develops and delivers complete power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, demand response, and microgrid solutions, as well as products and packages supporting the rapidly growing data center markets. PSI’s industrial end market provides engine and battery powertrain solutions to serve applications such as forklifts, agricultural and turf, arbor care, industrial sweepers, aerial lifts, irrigation pumps, ground support, and construction equipment. PSI’s transportation end market provides engine powertrain solutions to specialized applications such as terminal tractors, port equipment, military vehicles, and other non-road vocational vehicles. For more information on PSI, visit www.psiengines.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the current expectations of the Company about its prospects and opportunities. These forward-looking statements are entitled to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may involve risks and uncertainties. These statements often include words such as “anticipate,” “believe,” “budgeted,” “contemplate,” “estimate,” “expect,” “forecast,” “guidance,” “may,” “outlook,” “plan,” “projection,” “should,” “target,” “will,” “would” or similar expressions, but these words are not the exclusive means for identifying such statements. These statements are not guarantees of performance or results, and they involve risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect the Company’s results of operations and liquidity and could cause actual results, performance or achievements to differ materially from those expressed in, or implied by, the Company’s forward-looking statements.
The Company cautions that the risks, uncertainties and other factors that could cause its actual results to differ materially from those expressed in, or implied by, the forward-looking statements include, without limitation: the impact of the macro-economic environment in both the U.S. and internationally on our business and expectations regarding growth of the industry; uncertainties arising from global events (including the Russia-Ukraine and Israel-Hamas conflicts), natural disasters or pandemics, and their impact on material prices; the effects of strategic investments on our operations, including our efforts to expand our global market share and actions taken to increase sales growth; the ability to develop and successfully launch new products; labor costs and other employment-related costs; loss of suppliers and disruptions in the supply of raw materials; the Company’s ability to continue as a going concern; the Company’s ability to raise additional capital when needed and its liquidity; uncertainties around the Company’s ability to meet funding conditions under its financing arrangements and access to capital thereunder; the potential acceleration of the maturity at any time of the loans under the Company’s uncommitted revolving credit agreement through the exercise by any lender of its demand right in its Revolving Credit Agreement; the impact of rising interest rates; changes in economic conditions, including inflationary trends in the price of raw materials; our reliance on information technology and the associated risk involving potential security lapses and/or cyber-attacks; the ability of the Company to accurately forecast sales, and the extent to which sales result in recorded revenues; changes in customer demand for the Company’s products; volatility in oil and gas prices; the impact of U.S. tariffs on imports and exports; the impact of supply chain interruptions and raw material shortages, including compliance disruptions such as the UFLPA delaying goods from China; the potential impact of higher warranty costs and the Company’s ability to mitigate such costs; any delays and challenges in recruiting and retaining key employees consistent with the Company’s plans; the potential effects of damage to our reputation or other adverse consequences if our employees, suppliers, sub-suppliers or other contract parties, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, human rights or other laws; the impact of unanticipated changes in our effective tax rate, the adoption of new tax legislation or exposure to additional income tax liabilities; and the risks and uncertainties described in reports filed by the Company with the SEC, including without limitation its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Company’s subsequent filings with the SEC.
The Company’s forward-looking statements are presented as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: Power Solutions International, Inc. Kenneth Li Chief Financial Officer 630-284-9719 kli@psiengines.com
FAQ
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