Dayco Completes Refinancing, Declares Special Cash Distribution, Enhances Liquidity

TROY, Mich.--()--Dayco, LLC, a leading global engine management technologies supplier for the aftermarket, light vehicle and commercial vehicle industries, today announced that it has completed certain refinancing transactions through its subsidiaries, including a new $375 million senior secured term loan and $60 million senior secured asset-based revolving credit facility.

The Company announced that, as part of the refinancing, it has replaced a previously existing credit facility and will be repaying certain outstanding notes due 2017. The Company also announced that it will use the proceeds from the term loan to issue a one-time special cash distribution of approximately $108 million in the aggregate to its unit holders of record as of December 11, 2013, which the Company intends to pay on or around December 16, 2013. Proceeds from the term loan will also be available for other general corporate purposes.

The refinancing transactions result in net debt of 2.7X adjusted EBITDA for the twelve month period ended August 31, 2013, on a pro forma basis. They also increase the Company’s projected total available liquidity by over 20%, generating significant balance sheet capacity for future growth.

The refinancing and the distribution represent the most recent strategic initiatives by the Company to improve its liquidity and enhance balance sheet flexibility. In the last few months, the Company has completed, and is currently on schedule to integrate, acquisitions of assets from Metavation, LLC in the US and Mexico, and of Precision Parts in Australia and North America that have strengthened the Company’s global footprint and product offering. The Company is also progressing with organic growth initiatives in Europe and emerging markets, including Brazil, China and India.

“We are very excited about the Company’s completion of the refinancing transactions and the distribution which will return value to our stakeholders,” stated Jim Orchard, Dayco’s Chief Executive Officer. “The Company remains confident in its plan to generate further growth and value creation by leveraging its global footprint, recent acquisitions, brand equity and innovation product pipeline.”

About Dayco

Dayco is a leader in the research, design, manufacturing and distribution of a broad range of belts, tensioners and pulleys for the automotive, trucking, construction, agricultural and industrial markets. Recognized by both original equipment manufacturers and the automotive aftermarket as an innovative, technology-driven organization, Dayco operates a fully integrated global network of manufacturing facilities, distribution centers, technical centers and sales offices employing a workforce of nearly 3,000 employees. Dayco continues to be guided by the 108-year-old primary business strategy to anticipate and satisfy the needs of our customers by providing timely, quality products and services.

For more information about Dayco, visit the Company's website at www.dayco.com.

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Forward-Looking Statements

This press release may include forward looking statements and projections. Any such statements and projections are subject to a number of known and unknown risks, uncertainties and assumptions and reflect various estimates and assumptions by Dayco concerning anticipated results. Whether or not any such forward looking statements or projections are in fact achieved will depend upon future events, some of which are not within the control of Dayco. Accordingly, actual results may vary from the projected results and such variations may be material. Dayco shall have no duty to update any forward looking statements or projections in this press release.

Contacts

Dayco
Media Contact:
Brian Wheeler, Marketing Manager
1-918-481-2381
brian.wheeler@dayco.com

Release Summary

Dayco completes certain refinancing transactions through its subsidiaries, including a new $375 million senior secured term loan and $60 million senior secured asset-based revolving credit facility.

Contacts

Dayco
Media Contact:
Brian Wheeler, Marketing Manager
1-918-481-2381
brian.wheeler@dayco.com