Power Solutions International increased its committed revolving credit capacity by $85 million, raising the facility to $220 million from $135 million, as it locked in a new three-year agreement that runs through Sept. 25, 2029.
The company said the new facility replaces its prior Standard Chartered Bank facility, which was repaid in full and terminated at closing. Borrowing costs also improved: loans tied to SOFR now carry a spread of 1.80%, down from 2.60% under the previous facility, a reduction of 80 basis points.
The move gives PSI more liquidity and a larger borrowing cushion as it pursues growth initiatives. The company said the credit line is supported by HSBC Bank USA as administrative agent, along with Australia and New Zealand Banking Group, Bank of China’s Chicago branch and BNP Paribas.
CEO Richard Hu said the expanded facility adds flexibility to support the company’s growth strategy and customer execution. CFO Kenneth Li pointed to both the larger committed capacity and lower borrowing spread as strengthening PSI’s liquidity position. As a result of these announcements, the company's shares have moved 3.43% on the market, and are now trading at a price of $47.10. Check out the company's full 8-K submission here.
