School loan

Douglas Dynamics finalizes new term A and revolving loan

MILWAUKEE, June 14, 2021 (GLOBE NEWSWIRE) — Douglas Dynamics, Inc. (NYSE: PLOW), North America’s leading manufacturer and upfitter of work truck accessories and equipment, today announced that it refinanced its existing $375 million senior loan facility with a new $225 million A term loan facility and a $100 million senior secured revolving credit facility maturing in June 2026.

“We believe this refinancing transaction provides us with the right capital structure to successfully execute our future growth strategies for the foreseeable future. The new facilities reduce our overall debt profile, strengthen our strong financial position and ensure that we have the flexibility to invest in the business, while continuing to seek external growth opportunities in the years to come. explained Sarah Lauber, Chief Financial Officer.

Proceeds from the borrowings under the New Term Loan A Facility and the Senior Secured Revolving Credit Facility will be used for general corporate purposes, including the repayment of all borrowings under the company’s $275 million Term Loan Facility B, due 2026 and its prior $100 million. senior secured revolving credit facility.

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

The new credit agreement includes customary negative and positive representations, warranties and covenants, as well as customary events of default and certain cross-default provisions that could result in an acceleration of the credit agreement that are similar to the provisions related to the company’s previous Term Loan B. and revolving credit facilities. In addition, the credit 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 the fiscal quarter ending June 30, 2021 and that it has a consolidated interest coverage ratio, as defined in the credit agreement, of at least 3.00 to 1.00 as of the last day of any fiscal quarter beginning with the fiscal quarter ending June 30, 2021. The agreement also includes a clause allowing the Company to increase its leverage ratio from 3.50 to 1.00 to 4.00 to 1.00 for four quarters if the Company completes an acquisition of equal or greater value. at $75 million.

JPMorgan Chase Bank, NA acted as administrative agent, JP Morgan Chase Bank, NA and CIBC Bank USA, acted as lead arrangers and joint bookrunners, CIBC Bank USA acted as syndication, and Bank of America, NA and Citizens Bank, NA acted as co-documentation agents. Foley & Lardner LLP acted as legal counsel to the company.

About Douglas Dynamics

Home to the most trusted brands in the industry, Douglas Dynamics is the leading manufacturer and installer of commercial work truck accessories and equipment in North America. For more than 70 years, the Company has been innovating with products that not only enable people to do their jobs more effectively and efficiently, but also enable businesses to increase their profitability. Through its proprietary Douglas Dynamics Management System (DDMS), the company is committed to continuous improvement aimed at consistently producing the highest quality products, at industry-leading levels of service and delivery. that ultimately generate shareholder value. Douglas Dynamics’ portfolio of products and services is divided into two segments: First, the work truck accessories segment, which includes commercial snow and ice removal equipment sold under the FISHER®, SNOWEX® and WESTERN® brands. Second, the Work Truck Solutions segment, which includes the fitment of market-leading accessories and storage solutions under the HENDERSON® brand, as well as the DEJANA® brand and its associated sub-brands.

Forward-looking statements

This press release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, demand for products, payment of dividends and availability of financial resources. These statements are often identified by the use of words such as “anticipate”, “believe”, “intend”, “estimate”, “expect”, “continue”, “should”, “could “, “may”, “plan”, “project”, “predict”, “will” and similar expressions and include references to assumptions and relate to our future prospects, developments and business strategies. These statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, weather conditions, particularly the absence or reduction of snowfall and the timing of such snowfall, our ability to handle general economic, business and geopolitical conditions, including the impacts of natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic, our inability to maintain good relationships with our distributors, our inability to maintain good relationships with original equipment manufacturers with whom we currently do significant business, lack of available or favorable financing options for our end users, distributors or customers , increases in the price of steel or other materials, including due to tariffs, necessary for the production ion of our products that cannot be passed on to our distributors, fuel or freight price increases, a significant decline in economic conditions, the inability of our suppliers and original equipment manufacturer partners to meet our volume or quality requirements, inaccuracies in our estimates of future demand for our products, our failure to protect or continue to develop our intellectual property portfolio, the effects of laws and regulations and their interpretations on our business condition and financial, our inability to develop new products or improve existing products to meet the needs of end users, losses due to lawsuits resulting from personal injury associated with our products, factors that could impact future reporting and the payment of dividends, our inability to compete effectively with the competitively, our inability to achieve anticipated financial performance with the assets of Dejana Truck & Utility Equipment Company, Inc., which we acquired in 2016, and any unforeseen costs or liabilities related to such or any future acquisitions, as well as those described in the section titled “R isk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and any subsequent Form 10-Q filings. You should not place undue reliance on these forward-looking statements. Further, the forward-looking statements contained in this release speak only as of the date hereof, and we undertake no obligation, except as required by law, to update or release any revisions to any forward-looking statements, even if new information becomes available in the future.

For more information, contact:
Douglas Dynamics, Inc.
Nathan Elwell
[email protected]