Power Solutions International, Inc. Secured $135 Million Long-Term Committed Credit Facility to Support Strategic Growth

Globe and Mail

7 days ago

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 $135.0 million, providing enhanced flexibility and strategic firepower to support our continued growth and innovation. The agreement now extends through July 30, 2027, solidifying our financial foundation for the next two years.
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 $29.2 million from the tax benefits as of June 30, 2025.'
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 2.10% per annum. In the event the Company's majority shareholder, Weichai America Corp. ('Weichai') holds less than fifty percent (50%) of the common equity of the Company, the interest rate under the Amended Credit Agreement will increase to the applicable SOFR plus 2.60% per annum.
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.