Motorcar Parts of America Announces Refinancing of Credit Facility With PNC Bank National Association, $100M Revolver And $25M Term Loan

Motorcar Parts of America, Inc. (Nasdaq: MPAA) announced it has entered into a $125 million credit facility with PNC Bank National Association (NYSE: PNC) consisting of a $100 million revolver and $25 million term loan.Loans outstanding under the new credit facility bear interest, at the company's option, at the domestic rate or at the LIBOR rate plus, in each case, an applicable per annum margin. The current applicable LIBOR interest rate for both the revolver and the term loan is 2.94%, consisting of LIBOR of 0.19% plus a margin of 2.75%. The new credit facility replaces a previous credit facility, comprised of an outstanding $82.4 million term loan and an undrawn $40 million revolver. The applicable LIBOR interest rate for the previous term loan was 6.75%, consisting of a LIBOR floor of 1.50% plus a margin of 5.25%. Post-closing, the company had a $25 million term loan outstanding, in addition to $15 million of borrowings on the revolving credit facility."The new facility will result in reduced interest expense and provides financial flexibility to execute management's strategic growth plans," said Selwyn Joffe, chairman, president and chief executive officer.