Modine Manufacturing Company, a diversified global leader in thermal management technology and solutions, today announced that it has amended its existing credit agreements to provide covenant flexibility through fiscal 2022.
Key Amendment Highlights:
- Raises the leverage ratio covenant limit for the next two fiscal years, ending in the fourth quarter of fiscal 2022
- Provides additional flexibility to execute automotive exit strategy
- Includes higher interest rates on borrowings during period of covenant flexibility and 1 percent LIBOR floor
“While Modine maintains a relatively strong balance sheet and a diversified business portfolio, we wanted to proactively protect our liquidity by ensuring we have maximum flexibility during this period of heightened uncertainty,” said Modine Vice President, Finance and Chief Financial Officer, Michael B. Lucareli. “We value our relationships with our lenders and believe that these amendments to our credit agreements provide us with the flexibility to strategically manage the business through this pandemic and position us well for when our markets recover. We appreciate the strong support of our liquidity partners as we navigate through this global crisis and continue to work towards the strategic exit of our automotive business.”
The Company will hold its fourth quarter fiscal 2020 earnings call on May 29, 2020, and will further discuss these amendments and provide a more detailed update at that time.
SOURCE: Modine
