Commercial Vehicle to redeem 7 7/8% notes after call premium expires

New York, March 13 – Commercial Vehicle Group, Inc. said it plans to call its $235 million of 7 7/8% senior notes due April 2019 in April after the call redemption premium reduces to zero.

Funding for the repayment will come from a new $175 million term loan B plus $60 million of cash from the company’s balance sheet, according to a news release.

As part of the refinancing, Commercial Vehicle Group will increase its ABL facility to $65 million.

“The company’s continuing operational and restructuring efforts and focus on managing down selling, general and administrative costs has allowed us to protect our margins during a cyclical decline of sales,” said chief financial officer Tim Trenary in the news release.

“Furthermore, cash on the balance sheet has grown to $130 million at Dec. 31, 2016.

“This financial performance, taken together with the favorable credit markets at this time, is an opportunity for the company to refinance its 7.875% notes.”

Commercial Vehicle Group is a New Albany, Ohio supplier of cab-related products and systems for the commercial vehicle market.

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