Douglas Dynamics Completes New Term A Loan and Revolving



MILWAUKI, June 14, 2021 (GLOBE NEWSWIRE) – Douglas Dynamics, Inc. (NYSE: PLOW), a leading manufacturer and supplier of attachments and work truck attachments in North America, today announced it has refinanced an existing $ 375 million loan as a core secured loan. with a new $ 225 million fixed-term credit line A and a $ 100 million senior secured revolving credit facility due June 2026.

“We believe this refinancing deal provides us with the right capital structure to successfully implement our future growth strategies for the foreseeable future. The new manufacturing facility reduces our overall debt structure, strengthens our financial soundness and ensures that we have the opportunity to invest in the business as well as seize opportunities for external growth in the coming years, ”explained Sarah Lauber, CFO.

Borrowing proceeds from the new Term A loan facility and the senior secured revolving facility will be used for general corporate purposes, including the full repayment of the previous USD 275 million Term B facility, maturing in 2026 senior secured revolving credit line.

The new loan agreement provides for a $ 225 million term loan A and a $ 100 million senior secured revolving facility. The company may also request an increase in revolving commitments and / or additional term loans for a total amount not exceeding $ 175 million. Term loan The credit line will bear an interest rate of LIBOR plus a margin ranging from 1.375% to 2.00%, depending on the company’s leverage ratio as defined in the loan agreement.

The new loan agreement includes ordinary statements, guarantees, negative and positive covenants, as well as normal default events and certain cross default provisions that may accelerate the loan agreement, which are similar to those in the company’s previous Term Loan B. and revolving lines of credit. In addition, the loan agreement requires the company to have a leverage ratio of no more than 3.50 to 1.00 on the last day of any fiscal quarter beginning with a fiscal quarter ending June 30, 2021 and have a consolidated interest coverage ratio as defined. in the loan agreement – at least 3.00 to 1.00 on the last day of any financial quarter beginning with the financial quarter ending June 30, 2021. The agreement also includes a clause allowing the Company to increase the leverage ratio from 3.50 to 1.00 to From 4:00 am to 1:00 am for four quarters in the event that the Company completes an acquisition of $ 75 million or more.

JPMorgan Chase Bank, NA acted as Administrative Agent, JP Morgan Chase Bank, NA and CIBC Bank USA acted as Joint Lead Arrangers and Joint Bookrunners, CIBC Bank USA acted as Syndication Agent, and Bank of America, NA and Citizens Bank, NA acted as agents for joint documentation. Foley & Lardner LLP acted as legal advisor to the company.

About Douglas Dynamics

Home to some of the most trusted brands in the industry, Douglas Dynamics is the leading manufacturer and supplier of commercial vehicle attachments and equipment in North America. For over 70 years, the company has been creating innovative products that not only enable people to do their jobs more efficiently and effectively, but also enable businesses to increase profitability. Through its proprietary Douglas Dynamics Management System (DDMS), the Company is committed to continuous improvement aimed at consistently producing the highest quality products with industry-leading levels of service and delivery that ultimately add value to shareholders. The Douglas Dynamics product and service portfolio is divided into two segments: First, the Work Truck Attachment segment, which includes commercial snow and ice control equipment sold under the FISHER®, SNOWEX® and WESTERN® brands. Secondly, the Work Truck Solutions segment, which includes the modernization of the market-leading attachments and storage solutions under the HENDERSON® brand, as well as under the DEJANA® brand and related sub-brands.

Forward-looking statements

This press release contains certain forward-looking statements within the meaning of section 21E of the Stock Exchange Act 1934, as amended. These statements include information related to future events, future financial performance, strategies, expectations, competitive environment, regulation, product demand, dividend payments and the availability of financial resources. These statements are often identified by words such as “expect,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “might,” “may,” “plan” , “Project”, “forecast”, “will” and similar expressions and include references to assumptions and refer to our future prospects, development and business strategies. Such statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause or contribute to such differences include, but are not limited to, weather conditions, in particular the absence or decline of snowfall and the timing of snowfall, our ability to manage general economic, commercial and geopolitical conditions, including impacts. natural disasters, pandemics and outbreaks of infectious diseases and other adverse public health events such as the COVID-19 pandemic, our inability to maintain good relationships with our distributors, our inability to maintain good relationships with the original equipment manufacturers with whom we currently conduct significant business, lack of available or favorable financing options for our end users, distributors or customers, rising prices for steel or other materials, including as a result of tariffs required to manufacture our products that cannot be passed on to others for our distributors; rising fuel prices or freight, significant deterioration in economic conditions ions, inability of our suppliers and original equipment partners to meet our volume or quality requirements, inaccuracies in our estimates of future demand for our products, our inability the ability to protect or continue to grow our intellectual property portfolio, the implications of laws and regulations and their interpretation of our business and financial condition, our inability to develop new products or improve existing products in response to the needs of end users, damages due to personal injury lawsuits related to our products, factors that may affect future declaration and payment of dividends, our inability to compete effectively with competitors, our inability to achieve projected financial performance with the assets of Dejana Truck & Utility Equipment Company, Inc., which we acquired in 2016, as well as incidental expenses or liabilities associated with such acquisitions or any future acquisitions, as well as those discussed in the section entitled “R isk Factors” in our annual report on Form 10-K for the year ended December 31, 2020, and in all subsequent feeds in F Form 10-Q. You should not place undue reliance on these forward-looking statements. In addition, the forward-looking statements in this release are valid only as of the date of this document and we do not undertake any obligation, save as required by law, to update or release any changes to any forward-looking statement, even if new information becomes available. to the future.

For more information contact:
Douglas Dynamics, Inc.
Nathan Elwell


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