Altra Industrial Motion Announces $ 1.4 Billion Refinancing – Form 8-K

Altra Industrial Motion Corp. announces $ 1.4 billion refinancing

BRAINTREE, Mass., November 17, 2021 – Altra Industrial Motion Corp. (Nasdaq: AIMC) (“Altra” or the “Company”), a leading global manufacturer and supplier of motion control, power transmission and automation products, today announced that the Company has entered into a new five-year credit agreement between the Company and the lenders party to the credit agreement from time to time, consisting of a new term loan of $ 400 million and a new revolving credit facility of $ 1 billion dollars. The Company will use the proceeds to repay in full all outstanding amounts on its existing term loan and revolving credit facilities, which have been terminated, and for general corporate purposes, including acquisitions.

“We are very satisfied with the results of this refinancing,” said Carl Christenson, Chairman and CEO of Altra. “Based on the current interest rate environment, we expect this transaction to have the potential to provide us with a reduction in our annual interest charges of approximately $ 4 million to $ 5 million. Additionally, this transaction strengthens our efforts to strengthen our balance sheet and provides us with the flexibility and ability to pursue our long-term organic growth and acquisition strategies. ”

About Altra Industrial Motion Corp.

Altra Industrial Motion Corp. is one of the world’s leading manufacturers and suppliers of motion control, automation, power transmission and engine braking systems and components. Altra’s portfolio consists of 27 reputable brands, including Bauer Gear Motor, Boston Gear, Jacobs Vehicle Systems, Kollmorgen, Portescap, Stromag, Svendborg Brakes, TB Wood’s, Thomson and Warner Electric. Headquartered in Braintree, Mass., Altra has more than 9,000 employees and 48 production sites in 16 countries around the world.

Forward-looking statements

All statements, other than statements of historical fact included in this press release, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, any statement that may predict, predict, indicate or imply future results, performance, accomplishments or events. Forward-looking statements can generally be identified by phrases such as “believes”, “expects”, “possible”, “continue”, “could”, “should”, “research”, “predict”, “anticipate” , “Intends”, “projects”, “estimates”, “plans”, “could”, “designed”, “should be” and other similar expressions which denote expectations of future or rather conditional events as statements of fact. Forward-looking statements may also relate to strategies, plans and objectives and the potential results of future operations, financial results, financial condition, business prospects, growth strategy and liquidity, and are based on financial data, market assumptions and management’s current activities. plans and current beliefs or estimates of future results or trends available only at the time the statements are made, which may become outdated or incomplete. Forward-looking statements are inherently uncertain and investors should recognize that events could differ materially from our expectations. These statements include, but are not limited to, statements regarding (a) management’s expectations regarding the reduction of interest costs, (b) the Company’s efforts to strengthen its balance sheet, and (c) the ability to the Company to pursue and execute its organic growth and forward acquisition strategies.

In addition to the risks and uncertainties mentioned in this press release, certain factors could cause actual results to differ materially from those anticipated by certain statements made. These include: (1) competitive pressures, (2) changes in political and economic conditions in the United States and abroad and the cyclical nature of our markets, (3) loss of distributors, (4 ) the ability to develop new products and meet customer needs, (5) the risks associated with international operations, including currency risk, and the effects of tariffs and other trade actions taken by the United States and ” other countries, (6) the accuracy of estimated forecasts from OEM customers and the impact of the current global economic environment on our customers, (7) the risks associated with a disruption in our supply chain, (8 ) fluctuations in the costs of raw materials used in our products, (9) product liability claims, (10) work stoppages and other labor issues involving company facilities or company customers, (11) cha changes in employment, environment, tax and other laws and changes in law enforcement, (12) loss of key executives and other personnel, (13) associated risks of compliance with environmental laws , (14) the ability to successfully execute, manage and integrate key acquisitions and mergers, (15) the inability to obtain or protect intellectual property rights, (16) impairment or impairment reduction of goodwill or intangible assets, (17) failure of operating equipment or IT infrastructure, including cyber attacks or other security breaches, and non-compliance with data privacy laws or regulations , (18) risks associated with our leverage, (19) risks associated with restrictions contained in the agreements governing Altra’s total principal amount of $ 400 million of 6.125% senior bonds due 2026 and the ease of e Revolving Credit and the Altra Term Loan Facility, (20) risks associated with complying with tax laws, (21) risks associated with the global recession and volatility and disruption in global financial markets, ( 22) risks associated with the implementation of our enterprise resource planning system, (23) risks associated with the acquisition and integration of A&S and other acquisitions, (24) risks associated with certain minimum purchase agreements we have with suppliers, (25) risks related to our relationships with strategic partners, (26) our ability to offset the increase in raw material and labor costs with price increases, (27) risks associated with our exposure to variable interest rates and foreign exchange rates, (28) swap counterparty credit risk, including interest rate swap contracts, currency swap contracts and hedging agreements, (29) ri sks associated with our exposure to renewable energy markets, (30) risks related to regulations concerning conflict minerals, (31) risks related to restructuring and plant consolidations, (32) risks related to our acquisition of A&S , including (a) the possibility that we may not be able to achieve the expected synergies and operational efficiencies from the transaction on time or not at all and to successfully integrate A&S, ( b) eg expected or targeted future financial and operational performance and results, (c) operating costs, loss of customers and business interruption (including, without limitation, difficulties in maintaining relationships with employees, customers, customers or suppliers) being higher than expected as a result of the transaction, (d) our ability to retain leaders and key employees, (e) slowdowns or slowdowns in conditions economic ions in general and in the markets in which A&S activities participate in particular, (f) lower than expected investment and capital expenditure in equipment that uses components produced by us or A&S, (g) lower demand than planned for our repair and replacement business or those of A&S, (h) our ability to successfully integrate the merged assets and associated technology and achieve operational efficiencies, (i) the integration of A&S being more difficult, time-consuming or expensive than expected, (j) the inability to undertake certain securities transactions that might otherwise be advantageous to comply with certain tax covenants, (k) unknown potential liabilities and unforeseen expenses related to acquisition and (l) impact on our internal controls and compliance with regulatory requirements under the Sarbanes-Oxley Act of 2002, (33) exposure to development s UK policies, including the effect of its withdrawal from the European Union, and the uncertainty surrounding the implementation and effect of Brexit and related negative developments in the European Union and elsewhere, ( 34) Altra’s ability to realize the efficiencies, savings and other benefits expected from its reduction in costs, improved margins, restructuring, plant consolidation and other initiatives optimization, (35) the risks associated with the transition from LIBOR to an alternative benchmark rate, (36) the scope and duration of the global COVID-19 pandemic and its impact on global economic systems and our employees, sites, operations, customers and supply chain, including the impact of the pandemic on manufacturing and supply capacities around the world, (37) adverse conditions in the credit and capital markets limiting or preventing

Ability of the Company, its customers and suppliers to borrow or raise capital, (38) the ability of the Company to invest in new technologies and manufacturing techniques and to develop or adapt to changing technologies and manufacturing techniques, (39) defects, quality issues, disclosure or misuse of our products and capabilities, (40) changes in labor or employment laws, (41) the Company’s ability to recruit , retain and motivate key sales, marketing or engineering personnel, (42) unscheduled repairs or equipment failures, (43) changes in the Company’s tax rates, including the promulgation of the Tax Cuts and Jobs Act of 2017, or exposure to additional obligations or tax assessments, as well as audits by tax authorities, (44) the risks associated with the Company’s ability to successfully divest or to cede in another way between taken that are deemed not to correspond to our strategic plan or do not achieve the desired return on investment and (45) other risks, uncertainties a and other factors described in the Company’s quarterly reports on Form 10- Q and the annual reports on Form 10-K and in other documents filed by the Company with the United States Securities and Exchange Commission (SEC) or in documents incorporated by reference therein. Except as required by applicable law, Altra does not intend to update or change its forward-looking statements, whether as a result of new information, future events or otherwise.



Altra Investor Relations


Email: [email protected]


Altra Industrial Motion Corp. published this content on November 19, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on November 19, 2021 04:43:09 PM UTC.

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