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

Core Insights - Power Solutions International, Inc. (PSI) announced a significant financial milestone by amending its Uncommitted Revolving Credit Agreement, increasing its borrowing capacity to $135.0 million, which enhances its financial flexibility and supports growth and innovation [1][2] - The amended agreement extends through July 30, 2027, solidifying PSI's financial foundation for the next two years [1] - The company has achieved profitability and positive cash flows from operations, allowing it to release a valuation allowance against deferred tax assets, resulting in an increase of $29.2 million in net income and stockholders' equity as of June 30, 2025 [2] Financial Details - The amended credit agreement is subject to customary events of default and covenants, including minimum adjusted EBITDA, minimum interest coverage ratio, and maximum gross leverage ratio [2] - Borrowings will incur interest at the Secured Overnight Financing Rate (SOFR) plus 2.10% per annum, which increases to SOFR plus 2.60% if the majority shareholder, Weichai America Corp., holds less than 50% of the common equity [2] - The obligations under the amended credit agreement are guaranteed by certain wholly-owned subsidiaries and secured by substantially all assets of the company [3] Company Overview - PSI is a leader in designing, engineering, and manufacturing advanced, emission-certified engines and power systems, providing integrated solutions to global original equipment manufacturers and end-users [5] - The company offers complete power systems for various applications, including stationary and mobile power generation, and serves multiple end markets such as industrial and transportation [6]