Mexico City, December 2, 2014:
Rassini, the leader in suspension and brake components for the automotive industry in North America and Brazil, announced today the payment of existing debt through US$120 million of new funding from various banks. The transaction is part of Rassini's ongoing initiative to leverage its improving financial results in order to accelerate debt repayments and reduce overall cost of debt.
The syndicated loan was contracted by Rassini's Suspensions Division North America for a period of five years at an interest rate equal to three months LIBOR plus a variable spread of between 250 and 350 basis points depending on the level of indebtedness, which represents less than 50% of the cost of the replaced debt and has a more stable amortization schedule over the life of the loan.
Given the loan will replace existing debt, Rassini's leverage ratio will remain at its current level while its interest coverage is expected to improve due to the favorable rate of the new loan. The new debt structure of the group is concentrated within Rassini's operating companies, which provides the businesses with greater flexibility to invest in future growth as well as to pay dividends to shareholders.
"Throughout 2014, our impressive operational performance has yielded strong top- and bottom- line growth. We have successfully leveraged these results to strengthen our financial footing and accelerate our debt repayments, and this new refinancing is another milestone within this strategy," commented Eugenio Madero, CEO of Rassini North America. "This transaction demonstrates the confidence that many leading global banks have in Rassini's long-term growth potential and it motivate us to work even harder to achieve the goals we have set and to generate greater value to all the stakeholders that placed its trust in us".
BBVA Bancomer was the lead underwriter for the transaction, with Comerica Bank, Sabadell Capital, Bancomext, and Banco Monex acting as joint underwriters.
Rassini is a leading global designer and manufacturer of suspension and brake components for the automotive industry. As the world's largest producer of suspension components for light commercial vehicles and the largest fully integrated brake disc producer in the Americas, Rassini has eight manufacturing sites and four tech centers strategically located in North America and Brazil. For more information, visit www.rassini.com.