Mexico City, Mexico. August 25, 2014
Rassini ("the Company"), a leading automotive supplier of suspension and brake components, announced today that it has made an advanced payment of 260 million pesos towards its Suspensions Division North America's credit facility.
With this payment, the outstanding balance of this credit facility has declined to 355 million pesos, which the Company expects to pay in full ahead of its contractual maturity scheduled for December 15, 2014.
Considering this prepayment, the total amount of advanced payments made on the Suspensions Division North America's credit facility over the last eighteen months has reached 909 million pesos, equivalent to approximately 5 times the contractual amortizations originally established in its existing contract.
"One of our key priorities has been the consistent and significant reduction of our debt. Given our excellent momentum and recent strong results as well as the favorable dynamics in the automotive sector, this is an ideal time to accelerate these efforts. Reducing our outstanding balance will provide us with the flexibility to pursue growth initiatives going forward and will uniquely position us to generate higher profitability as we expand our track record of growth for the benefit of all our stakeholders," said Eugenio Madero, CEO of SANLUIS Rassini's North America Division.
Extraordinary income generated to advance this payment was derived from the monetary realization of certain mining rights (royalties) held by the Company since the full sale of its Mining Division in June 2002.