AirBoss Announces New Credit Facilities and Update on Strategic Transition

AirBoss of America Corp. (TSX: BOS) (OTCQX:ABSSF) (the “Company” or “AirBoss”) today announced that it has entered into new senior secured credit facilities consisting of aggregate financing of up to US$180 million, which are replacing its current senior secured revolving credit facilities, and an update on its previously announced strategic transition.

Credit Facilities

The new credit facilities consist of a revolving asset-based credit facility co-arranged by The Toronto-Dominion Bank and Canadian Imperial Bank of Commerce (the “ABL Facility”) and a non-revolving term loan facility provided by Great Rock Capital Partners, LLC (the “Term Facility”). The commitments under the ABL Facility, when fully syndicated, are expected to be US$125 million (currently at US$100 million) and the Term Facility is for US$55 million. The maturity date under both facilities is November 29, 2027. Additional key terms of the new credit facilities include the following:

• Reducing the maximum applicable margin on revolving debt from 450 basis points to 225 basis points;
• Dividend increases above current levels are subject to certain financial conditions;
• Meeting certain minimum adjusted EBITDA and liquidity requirements; and
• Covenants related to annual capital expenditures.

“The new credit facilities will provide AirBoss with the financial flexibility it requires to continue executing our strategic transition,” said Chris Bitsakakis, President and Co-CEO of AirBoss. “We are excited to work with our new team of financing partners, as we continue our goal of transforming AirBoss into a global market leader in the custom rubber compounding market and the industries which we serve. We believe the new credit facilities are in the best interests of our shareholders and other stakeholders as they will enable us to continue focusing on long-term growth and creating sustainable value.”

Update on Strategic Transition

The Company continues to work diligently on its strategic review, evaluating a range of potential opportunities to enhance shareholder value. While no specific transactions are imminent or expected to occur in the near-term, AirBoss continues to explore potential strategic divestitures as well as the potential monetization of its real estate assets. There can be no assurance that this ongoing evaluation of strategic opportunities will result in the successful completion of any transaction, nor any assurance as to the timing or nature of any outcomes.

Source: AirBoss