Automotive parts manufacturer Standard Motor Products, Inc. (SMP) has announced a new five-year $750 million credit facility, with JPMorgan Chase Bank, N.A. serving as the agent, alongside a consortium of lenders.
This facility comprises $310 million in term loans and a $440 million revolving credit provision, permitting multi-currency borrowing. Moreover, the company plans to utilize interest rate swap agreements to stabilize the rate on approximately $200 million of the borrowings.
SMP stated that this credit facility will facilitate the funding necessary to finalize the acquisition of Nissens Automotive by the end of the year. Additionally, it provides the company with the flexibility to continue its capital allocation strategy, which includes growth investments and shareholder returns.
The new credit facility, which supplants the existing one, is set to mature in September 2029. The funding will support the acquisition of Nissens Automotive and settle all outstanding borrowings under the current credit arrangement.
Furthermore, proceeds from this facility will cover certain fees and expenses associated with the transaction, as well as serve other general corporate purposes.
