Helios Technologies Extends and Upsizes Credit Facility, While Reducing Borrowing Spreads
26 Junio 2024 - 8:00AM
Business Wire
Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the
“Company”), a global leader in highly engineered motion control and
electronic controls technology, today announced it has entered into
an amendment and restatement of its existing term loans and
revolving credit facility (“amended credit agreement”) to extend
debt maturities, strengthen and streamline its lender group, reduce
borrowing spreads, and expand the borrowing capacity under both its
revolving credit facility and accordion feature.
“The amended credit agreement supports our efforts to optimize
our capital structure while providing the financial flexibility to
execute on our strategic priorities,” said Josef Matosevic,
President and Chief Executive Officer of Helios. “We remain
committed to vigilantly managing the Company’s financial resources
for the long-term by upsizing our credit facility and reducing the
borrowing spreads for credit advances.”
The amended credit agreement extends debt maturity for five
years to June 25, 2029, upsizes the Company’s revolving credit
facility from $400 million to $500 million, and establishes a new
$300 million term loan that refinances and replaces the previous
term loan. The accordion feature is increased by $100 million, to
$400 million. The amended credit agreement also reduces borrowing
spreads by a range of 25 basis points bps to 50 bps compared to the
previous credit agreement, dependent upon the Company’s net
leverage ratio. In addition, the LIBOR to SOFR transitionary credit
spread adjustment of 10 bps has been eliminated.
“An efficient debt structure is an integral element that
supports our disciplined capital deployment, which in turn will
drive long-term value creation for our shareholders. We sincerely
appreciate the support of our banking partners in this endeavor,”
said Sean Bagan, Chief Financial Officer of Helios.
PNC Bank, National Association served as administrative agent
for the new credit agreement.
About Helios Technologies
Helios Technologies is a global leader in highly engineered
motion control and electronic controls technology for diverse end
markets, including construction, material handling, agriculture,
energy, recreational vehicles, marine and health and wellness.
Helios sells its products to customers in over 90 countries around
the world. Its strategy for growth is to be the leading provider in
niche markets, with premier products and solutions through
innovative product development and acquisition. The Company has
paid a cash dividend to its shareholders every quarter since
becoming a public company in 1997. For more information please
visit: www.heliostechnologies.com and follow us on LinkedIn.
FORWARD-LOOKING INFORMATION
This news release contains “forward‐looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934.
Forward‐looking statements involve risks and uncertainties, and
actual results may differ materially from those expressed or
implied by such statements. They include statements regarding
current expectations, estimates, forecasts, projections, our
beliefs, and assumptions made by Helios Technologies, Inc.
(“Helios” or the “Company”), its directors or its officers about
the Company and the industry in which it operates, and assumptions
made by management, and include among other items, (i) the
Company’s strategies regarding growth, including its intention to
develop new products and make acquisitions; (ii) the effectiveness
of creating the Centers of Excellence; (iii) trends affecting the
Company’s financial condition or results of operations; (iv) the
Company’s ability to continue to control costs and to meet its
liquidity and other financing needs; (v) the Company’s ability to
declare and pay dividends; and (vi) the Company’s ability to
respond to changes in customer demand domestically and
internationally, including as a result of the cyclical nature of
our business and the standardization. In addition, we may make
other written or oral statements, which constitute forward-looking
statements, from time to time. Words such as “may,” “expects,”
“projects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” variations of such words, and similar expressions are
intended to identify such forward-looking statements. Similarly,
statements that describe our future plans, objectives or goals also
are forward-looking statements. These statements are not
guaranteeing future performance and are subject to a number of
risks and uncertainties. Our actual results may differ materially
from what is expressed or forecasted in such forward-looking
statements, and undue reliance should not be placed on such
statements. All forward-looking statements are made as of the date
hereof, and we undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Factors that could cause the actual results to differ materially
from what is expressed or forecasted in such forward‐looking
statements include, but are not limited to, (i) the Company’s
ability to respond to global economic trends and changes in
customer demand domestically and internationally, including as a
result of standardization and the cyclical nature of our business,
which can adversely affect the demand for capital goods; (ii)
supply chain disruption and the potential inability to procure
goods; (iii) conditions in the capital markets, including the
interest rate environment and the availability of capital on terms
acceptable to us, or at all; (iv) global and regional economic and
political conditions, including inflation (or hyperinflation)
exchange rates, changes in the cost or availability of energy,
transportation, the availability of other necessary supplies and
services and recession; (v) changes in the competitive marketplace
that could affect the Company’s revenue and/or cost bases, such as
increased competition, lack of qualified engineering, marketing,
management or other personnel, and increased labor and raw
materials costs; (vi) risks related to health epidemics, pandemics
and similar outbreaks, which may among other things, adversely
affect our supply chain, material costs, and work force and may
have material adverse effects on our business, financial position,
results of operations and/or cash flows; (vii) risks related to our
international operations, including the potential impact of the
ongoing conflict in Ukraine and the Middle East; (viii) new product
introductions, product sales mix and the geographic mix of sales
nationally and internationally; and (ix) stakeholders, including
regulators, views regarding our environmental, social and
governance goals and initiatives, and the impact of factors outside
of our control on such goals and initiatives. Further information
relating to additional factors that could cause actual results to
differ from those anticipated is included but not limited to
information under the heading Item 1. “Business” and Item 1A. “Risk
Factors” in the Company’s Form 10-K for the year ended December 30,
2023 filed with the Securities and Exchange Commission (SEC) on
February 27, 2024 as well as any subsequent filings with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20240626362888/en/
For more information: Tania Almond Vice President,
Investor Relations and Corporate Communication (941) 362-1333
tania.almond@HLIO.com
Deborah Pawlowski Kei Advisors LLC (716) 843-3908
dpawlowski@keiadvisors.com
Helios Technologies (NYSE:HLIO)
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