Unique Fabricating extends forbearance; adviser must give timeline

By Wendy Van Sickle

Columbus, Ohio, Sept. 9 – Unique Fabricating NA, Inc. and Unique-Intasco Canada, Inc., units of parent Unique Fabricating, Inc., extended the forbearance agreement with the lenders on their 10th amended and restated credit agreement to Oct. 24 from Sept. 12, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also requires the company’s financial adviser to, among other things, deliver by Sept. 30 a reasonably detailed projected timeline for completing a transaction to refinance the bank debt, identifying potential financing sources for a refinancing transaction, identifying potential strategic alternatives if the company is unsuccessful at completing a refinancing transaction and providing an assessment from the adviser of the likelihood of the company’s ability to complete a refinancing transaction. Failure to do so would result in a forbearance termination event.

The amendment also updates or implements several financial covenants including: an update to the cash disbursements covenant, the creation of a weekly minimum liquidity covenant and the creation of a minimum sales covenant for August and September.

Also, the amendment defines a new forbearance termination event if Unique’s customers whose sales represent, in total, more than 5% of the company’s net sales for the 12-month period ended June 30, provide notice that they are resourcing business to a different supplier.

Citizens Bank, NA is administrative agent for the lenders.

The Auburn Hills, Mich., company makes foam, rubber and plastic components.

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