TPI Composites, Inc. Announces Refinancing Transaction With Oaktree, Significantly Strengthening Company's Liquidity Position And Enhancing Financial Flexibility; Improves Liquidity By ~$190M; Permanently Reduces Future Obligations By Up To $90M
Portfolio Pulse from Benzinga Newsdesk
TPI Composites, Inc. has improved its liquidity by approximately $190 million and reduced future obligations by up to $90 million through a refinancing transaction with Oaktree Capital Management. The agreement involves converting Oaktree's $436 million Series A Preferred Stock into a $393 million senior secured term loan and $43 million in common equity. The term loan's maturity is extended to March 31, 2027, and the company has the option to pay interest in kind until December 31, 2025. The transaction eliminates certain financial covenants and prepayment penalties, enhancing TPI's financial flexibility.
December 14, 2023 | 2:24 pm
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TPI Composites, Inc. has significantly improved its liquidity and financial flexibility through a refinancing agreement with Oaktree, which is expected to have a positive impact on the company's short-term financial health.
The refinancing transaction directly impacts TPI Composites by improving its liquidity and reducing future financial obligations. The extension of the term loan's maturity and the ability to pay interest in kind provide TPI with greater financial flexibility, which is likely to be viewed positively by investors and could lead to a short-term increase in the company's stock price.
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