Reported Earlier, Power Solutions International Extends Its $50M Shareholder Loan Agreement With Weichai America
Portfolio Pulse from Benzinga Newsdesk
Power Solutions International (PSIX) has amended its $50 million shareholder loan agreement with Weichai America to extend the loan maturity date to November 30, 2024. The loan is fully drawn and subordinated to the company's $130 million senior secured revolving credit facility with Standard Chartered Bank, of which $65 million has been borrowed as of December 5, 2023.
December 06, 2023 | 6:59 am
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PSIX has extended the maturity date of its $50 million loan with Weichai America to November 2024, which is subordinate to a larger credit facility with Standard Chartered Bank.
The extension of the loan agreement provides PSIX with continued financial support from its majority stockholder, Weichai America, which may be viewed positively as it indicates ongoing backing. However, since the loan is fully drawn and subordinated to a larger credit facility, this news does not fundamentally alter the company's financial position but rather extends its existing obligations. The impact on the stock price is likely to be neutral in the short term as the market absorbs the implications of the extended debt maturity.
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