Clean Diesel Extends Term, Lowers Interest Rate on Credit Pact

Clean Diesel Technologies

announced today that it has amended the terms of the secured demand credit facility among CDTi, certain of its subsidiaries, and Faunus Group International, Inc. ("FGI"). As amended, the inventory borrowing sublimit under the FGI facility is increased from $1 million to the lesser of (i) $2 million and (ii) 50% of the aggregate purchase price paid by FGI for accounts under the FGI facility; the term of the facility is extended to August 15, 2015; and the interest rate on advances or borrowings is lowered by 100 basis points to the greater of (i) 6.50% per annum and (ii) 2.50% per annum above the prime rate. The lower interest rate, combined with reduced monthly collateral management and service fees, will result in a reduction in total borrowing costs in excess of 2% per annum.