Johnson City, Tenn, December 20, 2011 – NN, Inc. (Nasdaq: NNBR) today reported that it has borrowed an additional $20 million in seven-year fixed rate notes from Prudential Capital at a rate of 4.64%. The new notes, which mature on December 20, 2018, are interest-only for the first two years followed by four equal annual principal payments. The proceeds will be used to repay existing revolving credit bank debt and to fund growth capital projects. Prudential Capital has also agreed to reduce the rate on the Company’s existing $17.1 million of fixed rate notes due in 2014 from 6.50% to 5.39%.
James H. Dorton, Senior Vice President, Corporate Development and CFO commented, “We are pleased in the confidence that Prudential has shown in NN’s improved credit profile and growth opportunities by lending us an additional $20 million in fixed rate debt at record low rates for NN and additionally lowering the rate on our existing fixed rate debt.”
Post transaction, the Company has a total of $37.1 million in Prudential fixed rate notes and a $100 million revolving credit agreement with a syndicated bank group of Keybank, BB&T, Regionsbank and Wells Fargo. Approximately $50 million is outstanding under this agreement. The revolving credit agreement expires in April of 2014.
NN, Inc. manufactures and supplies high precision metal bearing components, industrial plastic and rubber products and precision metal components to a variety of markets on a global basis. Headquartered in Johnson City, Tennessee, NN has 10 manufacturing plants in the United States, Western Europe, Eastern Europe and China. NN, Inc. had sales of $365 million in 2010.
Other News:
NN, Inc. Enters into New Fixed Rate Debt Agreement
AutomationDirect Updates Switches
Galil Releases New Motion Controller
SKF Appoints Lars Wilsby to Senior Vice President, Group Business Transformation
Igus Supports Robotics Competition
Kaman Industrial Technologies Acquires Catching FluidPower and Announces Parker National Reseller Agreement
Dana Holding Corporation Receives Entrepreneur Award in Brazil
ABB Extends Panel Mounted Controller
