Standard Motor Products, Inc. – GuruFocus.com
NEW YORK, June 2, 2022 /PRNewswire/ — Standard Motor Products, Inc. (NYSE: SMP), a leading automotive parts manufacturer and distributor, today announced that it has entered into a new five-year contract $500 million credit facility, with JPMorgan Chase Bank, NA, as agent, and a syndicate of lenders, which includes a $100 million term loan and $400 million revolving credit facility (the “New Credit Facility”). In addition, SMP has entered into an interest rate swap agreement to fix the interest rate $100 million borrowings under the new credit facility.
Mr. Nathan IslandsChief Financial Officer of Standard Motor Products, said, “Our company has experienced significant growth since the establishment of our last loan facility, driven by our strategic initiatives as well as the favorable environment for organic growth that our industry provides. . This new credit facility, along with our strong cash flow generation, should provide us with the flexibility we need to support our growth and continue to execute on our strategic priorities. and opportunistic share buybacks.”
The new credit facility will mature in June 2027and the proceeds of the new credit facility will be used to repay all outstanding borrowings under the Company’s existing revolving credit facility and to pay certain fees and expenses incurred under the new credit facility and other general business purposes.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Standard Motor Products cautions investors that all forward-looking statements made by the company, including those that may be made in this press release, are based on management’s expectations at that time. they are facts, but they are subject to risks and uncertainties that may cause actual results, events or performance to differ materially from those contemplated by such forward-looking statements. Among the factors that could cause actual results, events or performance to differ materially from the risks and uncertainties discussed in this press release are those detailed from time to time in prior press releases and in the Company’s filings with from the Securities and Exchange Commission, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. In making these forward-looking statements, Standard Motor Products assumes no obligation or intention to update these statements after the date of this release.
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SOURCE Standard Motor Products, Inc.