Auto parts supplier TRW Automotive Holdings Corp. on Tuesday said it secured $400 million through two new term loans and reached a deal on its revolving credit facility.
The company, which makes seat belts, airbags, braking and steering systems and other parts, said one of the new loans is for $225 million, and matures on May 30, 2015. The second, for $175 million, matures May 30, 2016.
The company used the proceeds, plus some of its available cash, to repay the outstanding balances of previously existing term loans, which were set to come due earlier.
TRW also said it finalized an agreement with lenders representing 70 percent of commitments to amend and extend its revolving credit facility under its existing secured credit agreement. Certain lenders agreed to extend the maturity of their commitments to Nov. 30, 2014, from May 9, 2012. As a result, the company has $1.26 billion of an undrawn revolving credit facility through May 2012 and $845 million through November 2014. Each lender that agreed to extend the maturity of its revolving commitment was permitted to reduce its total by up to 20 percent and received an upfront fee.
Lenders under the revolving credit facility that did not agree to the extension represent $411 million of the previous $1.35 billion of commitments. These lenders will continue to hold their commitments through May 2012.
The loan deals are the latest step taken by TRW in the last six months to shore up its capital structure. The auto supplier also sold 16.1 million shares of common stock in August, raising $269 million, and completed a series of notes offerings in November that raised $493 million. The result is a reduction of the company's overall debt level and improved liquidity.
John C. Plant, president and CEO, said the deals made the company's balance sheet stronger and leave it "well positioned to take advantage of the industry rebound."
TRW shares closed Monday at $24.15. The stock has traded from $1.38 to $25.52 in the past 52 weeks.