Power Solutions International signs $220M credit line
Power Solutions International, Inc. (PSIX) entered into a $220 million committed revolving credit agreement on September 25, 2026, with a $70 million letter-of-credit sublimit and a September 25, 2029 maturity.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Power Solutions International, Inc. (PSIX) entered into a $220 million committed revolving credit agreement on September 25, 2026, with a $70 million letter-of-credit sublimit and a September 25, 2029 maturity. PSIX borrowed $35.0 million at closing; part of the proceeds repaid approximately $15.1 million of obligations under its prior facility, which was terminated, and the remainder is available for working capital and general corporate purposes.
The prior facility provided for borrowings of up to $135 million. SOFR borrowings under the new agreement carry Term SOFR plus 1.80% per year, compared with SOFR plus 2.60% under the prior facility. PSIX’s subsidiaries guarantee the obligations, which are secured by substantially all of the company’s and guarantors’ personal property, including subsidiary equity and intellectual property. Quarterly covenants require an interest coverage ratio of at least 3.00 to 1.00 and a leverage ratio no greater than 3.00 to 1.00.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointCommitted capacity rose from $135 million to $220 million, while the stated SOFR spread declined. 20% of market cap
Negative
- None.
Filing Explained
The agreement also makes a change of control a default if Weichai owns 50% or less of PSIX’s voting equity on a fully diluted basis, except while Weichai America can appoint a board majority and Weichai maintains at least 40% of PSIX’s equity.
8-K Event Classification
Key Figures
Key Terms
Term Secured Overnight Financing Rate financial
commitment fee financial
consolidated interest coverage ratio financial
consolidated leverage ratio financial
Intercompany Subordination Agreement financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much can PSIX borrow under its new credit facility?
How much did PSIX borrow at closing, and what happened to its prior facility?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry into a Material Definitive Agreement.
On September 25, 2026 (the “Closing Date”), Power Solutions International, Inc. (the “Company” or “PSI”) entered into a Revolving Credit Agreement (the “Credit Agreement”) with the lenders and letter of credit issuers party thereto from time to time (the “Lenders”) and HSBC Bank USA, National Association (“HSBC”), as administrative agent. The initial Lenders are HSBC; Australia and New Zealand Banking Group Limited; Bank of China Limited, Chicago Branch; and BNP Paribas. The Credit Agreement allows the Company to borrow up to $220 million on a committed basis, including a $70 million sublimit for letters of credit, and expires on September 25, 2029.
Borrowings under the Credit Agreement will incur interest, at the Company’s option, at Term Secured Overnight Financing Rate (“SOFR”) plus 1.80% per annum or at an alternate base rate plus an applicable margin. The Company will pay a commitment fee of 0.20% per annum on the average daily unused amount of the commitments, and letter of credit fees of 1.80% per annum on the daily amount available to be drawn under outstanding letters of credit. The Company may prepay borrowings at any time without premium or penalty, subject to the notice and other requirements of the Credit Agreement. Proceeds of the loans and letters of credit may be used for working capital and general corporate purposes and to pay fees and expenses associated with the Credit Agreement.
The Company’s obligations under the Credit Agreement are guaranteed by each of the Company’s subsidiaries, consisting of Bi-Phase Technologies, LLC, Power Great Lakes, Inc., Powertrain Integration Acquisition, LLC, Professional Power Products, Inc., PSI International, LLC, MTL Manufacturing & Equipment Inc. and The W Group, Inc. (collectively, the “Guarantors”). The obligations are secured by a security interest in substantially all of the personal property of the Company and the Guarantors, including pledges of the equity interests of subsidiaries and the Company’s and the Guarantors’ intellectual property. The security interest is granted under a Guaranty and Collateral Agreement, a Patent Security Agreement and a Trademark Security Agreement, each dated as of the Closing Date. On the Closing Date, the Company and the Guarantors also entered into an Intercompany Subordination Agreement in favor of HSBC, which subordinates intercompany indebtedness among them to the obligations under the Credit Agreement.
The Credit Agreement contains customary affirmative and negative covenants. These include limitations on indebtedness, liens, fundamental changes, restricted payments and transactions with affiliates, and financial covenants requiring the Company to maintain a consolidated interest coverage ratio of not less than 3.00 to 1.00 and a consolidated leverage ratio of not greater than 3.00 to 1.00, each tested as of the last day of each fiscal quarter. The Credit Agreement also contains customary events of default, including a change of control. A change of control occurs if Weichai Power Co., Ltd. (“Weichai”), the parent of the Company’s largest shareholder, Weichai America Corp. (“Weichai America”), beneficially owns, directly or indirectly, 50.0% or less of the Company’s voting equity interests on a fully diluted basis. No change of control occurs under that test, however, for so long as Weichai America has the right to appoint a majority of the Company’s board of directors and Weichai maintains, directly or indirectly, at least 40.0% of the Company’s equity interests. Weichai America, a wholly owned subsidiary of Weichai, currently holds approximately 46% of the Company’s outstanding common stock and, pursuant to the Investor Rights Agreement, dated March 31, 2017, between the Company and Weichai America, has the right to designate a majority of the Company’s board of directors for so long as it owns at least 40% of the Company’s outstanding common stock, calculated as provided therein.
Certain of the Lenders and their affiliates have provided, and may in the future provide, in the ordinary course of business, commercial banking and other financial services to the Company and its affiliates, including Weichai, for which they have received, and may in the future receive, customary fees and interest.
On the Closing Date, the Company borrowed $35.0 million under the Credit Agreement. The Company used a portion of the proceeds to repay in full all outstanding obligations under the Prior Credit Agreement described in Item 1.02 below and to pay fees and expenses related to the Credit Agreement. The remainder is available for working capital and general corporate purposes.
The foregoing descriptions of the Credit Agreement and the Guaranty and Collateral Agreement are qualified in their entirety by reference to such documents, copies of which are filed herewith as Exhibits 10.1 and 10.2, respectively, and which are incorporated by reference herein.
Item 1.02. Termination of a Material Definitive Agreement.
On September 25, 2026, in connection with its entry into the Credit Agreement, the Company repaid in full all outstanding obligations, totaling approximately $15.1 million (consisting of $15.0 million of principal plus accrued interest and fees), under its Uncommitted Revolving Credit Agreement, dated as of August 30, 2024, as amended by the First Amendment to Credit Agreement, dated as of February 4, 2025, and the Second Amendment to Credit Agreement, dated as of July 30, 2025 (as amended, the “Prior Credit Agreement”), with Standard Chartered Bank, as administrative agent, and the lenders party thereto. The Prior Credit Agreement provided for borrowings of up to $135 million on a committed basis and was scheduled to expire on July 30, 2027. Upon the repayment, the Prior Credit Agreement and all commitments thereunder were terminated. The Company did not incur any early termination penalties in connection with the termination of the Prior Credit Agreement.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information included in Item 1.01 of this report is incorporated by reference into this Item 2.03.
Item 8.01. Other Events.
On September 30, 2026, the Company issued a press release announcing its entry into the Credit Agreement. A copy of the press release is filed as Exhibit 99.1 to this report and is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 | Revolving Credit Agreement, dated as of September 25, 2026, among the Company, as borrower, the other loan parties party thereto, the lenders and letter of credit issuers party thereto and HSBC Bank USA, National Association, as administrative agent. | |
| 10.2 | Guaranty and Collateral Agreement, dated as of September 25, 2026, among the Company, the other grantors party thereto and HSBC Bank USA, National Association, as administrative agent. | |
| 99.1 | Press Release of Power Solutions International, Inc., dated September 30, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| Power Solutions International, Inc. | ||||||
| Dated: September 30, 2026 | By: | /s/ Xun Li | ||||
| Xun Li | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
Power Solutions International, Inc. Secures $220 Million Committed Revolving
Credit Facility to Support Continued Growth
WOOD DALE, Ill., September 30, 2026 – Power Solutions International, Inc. (the “Company” or “PSI”) (Nasdaq: PSIX), a leader in the design, engineering and manufacture of emission-certified engines and power systems, announced that it has entered into a new $220.0 million committed revolving credit facility (the “Credit Facility”). The new three-year Credit Facility increases PSI’s committed borrowing capacity from $135.0 million to $220.0 million, providing enhanced liquidity and financial flexibility to support the Company’s continued growth and strategic initiatives. The Credit Facility matures on September 25, 2029. The Credit Facility replaces the Company’s prior credit facility with Standard Chartered Bank, which was repaid in full and terminated in connection with the closing of the Credit Facility.
Borrowings under the Credit 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. SOFR borrowings under the prior facility bore interest at SOFR plus 2.60% per annum.
Richard Hu, Chief Executive Officer, commented, “The expansion of our committed credit facility is an important step in supporting PSI’s continued growth. The increased capacity and longer-term committed financing provide additional flexibility as we execute our strategy, serve our customers and pursue growth opportunities across our businesses.”
Kenneth Li, Chief Financial Officer, stated, “The increase in committed capacity from $135 million to $220 million, together with the reduction in our borrowing spread, strengthens our liquidity position and provides additional financial flexibility to support the Company’s continued growth. We appreciate the support of our banking partners and their confidence in PSI.”
The lenders under the Credit Facility are HSBC Bank USA, National Association, which also serves as administrative agent; Australia and New Zealand Banking Group Limited; Bank of China Limited, Chicago Branch; and BNP Paribas. Additional information regarding the Credit Facility is included in the Company’s Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission.
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 in-house design, prototyping, engineering and testing capabilities allow PSI to customize 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 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 within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the Company’s current expectations and assumptions regarding future events. Words such as “anticipate,” “believe,” “budget,” “contemplate,” “continue,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “outlook,” “plan,” “position,” “project,” “prospect,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in or implied by such statements.
Important factors that could cause actual results to differ materially include, without limitation: the Company’s ability to comply with the financial and other covenants under the Credit Facility; the timing and ultimate conversion of Power Systems orders into revenue, including data-center-related orders, and the volume and timing of related shipments; quarterly variability in product mix and the corresponding effect on gross profit and gross margin; the cost, pace, throughput and operational outcomes of capacity ramp-up activities at the Company’s Wisconsin operations, including the duration and magnitude of related production costs; the Company’s ability to execute operational improvement initiatives on the anticipated timetable; the level and persistence of customer demand in the power systems, industrial and transportation end markets; volatility in oil and gas prices and corresponding demand for related products; supply-chain disruptions, component availability and supplier performance; macroeconomic, regulatory and trade conditions, including U.S. tariffs and trade restrictions; integration of recent and future acquisitions, including the acquisition of MTL Manufacturing & Equipment Inc.; the outcome of pending or threatened litigation and regulatory inquiries, including the previously disclosed putative federal securities class action; changes in management or other personnel, including the timing of any related disclosures; the ability to recruit and retain key employees; the impact of changes in our effective tax rate or applicable tax legislation; and the other risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in the Company’s subsequent filings with the U.S. Securities and Exchange Commission, all of which are incorporated by reference into this press release.
The Company’s forward-looking statements speak only as of the date of this release. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements.
Contact:
Power Solutions International, Inc.
Kenneth Li
Chief Financial Officer
630-284-9719
kli@psiengines.com