Unique Fabricating, Inc. Announces Financing Agreement with Lenders and Investors
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The company obtains a modified loan agreement;
Investors provide debt financing;
B. Riley & Co. retained as investment banker to facilitate full refinancing
AUBURN HILLS, MI /ACCESSWIRE/October 4, 2022/ Unique Fabricating, Inc. (NYSE American: UFAB), a leader in the engineering and manufacturing of multi-material foam, rubber, and plastic components used in noise, vibration, and harshness management and engineering applications. air/water sealing for the transportation, appliance, medical, and consumer/off-road markets, today announced that it has reached an agreement with its bank lenders and certain existing equity investors. The investor agreement provides for debt financing of $3 million, as described below. The Company’s bank lenders have agreed to certain modifications to its existing credit facility, including allowing the Company to raise up to $4 million in additional debt financing. The Company closed today on $3 million of proposed new financing of $4 million. Taglich Brothers, Inc., which is acting as placement agent for the financing, expects to close the $4 million balance within a few business days.
Structure of transactions
- Taglich Brothers, Inc. is acting as placement agent for up to $4 million in in-kind notes, bearing interest at the rate of 12% per annum. Investors in the Notes will also receive warrants for an aggregate of 120,000 shares (assuming the full $4 million is exercised) at an exercise price equal to the greater of $0.75 per share or the closing price of the common shares of the Company on the date immediately preceding the last closing of the note offering. Investors will receive an additional 280,000 warrants if the notes are not redeemed within 12 months. Interest on the notes until the end of 2022 will be convertible at the option of the holders into common shares at a price equal to the exercise price of the warrant. The Notes are secured by and will be paid from the expected receipt of the Company’s Employee Retention Credits (ERCs) and any proceeds from the sale of a non-operating financial asset. The proceeds of this financing to date have been used to reduce the outstanding principal amount of the Company’s bank revolving line of credit, reduce bank term loans and prepay the principal payment of the term loan of the December 31, 2022.
- The Company’s existing forbearance agreement with the Bank’s lenders has been extended until November 7, 2022, and certain financial and cash flow covenants have been amended in the Company’s banking agreement.
- The Company engaged B. Riley & Co. as investment banker on a proposed full refinancing of the senior secured credit facility. There can be no assurance that the Company will be able to obtain such refinancing.
“Unique Fabricating retained the services of B. Riley in July to advise and assist with a proposed full refinancing of the existing senior secured credit facility,” commented Richard L. Baum, President of the Unique Fabricating Board of Directors. “We believe today’s liquidity bridge is an important first step towards a refinancing, and we continue to work with B. Riley to complete this refinancing. Doug and the Unique team have worked diligently to improve operations , reduce costs and continue to meet on an ongoing basis. We are encouraged by the cooperation of our existing lenders and the interest received thus far from several qualified institutions for the proposed refinancing. Our goal is to complete this refinancing as quickly as possible. possible.
“We believe the note offering will provide us with the financing needed to execute our business plan while we seek refinancing and should alleviate customer concerns about our financial condition,” added Doug Cain, CEO of Unique Fabricating. . “Unique Fabricating continues to effectively address the industry’s unprecedented challenges, and we believe this funding should strengthen our ability to become one of the strongest players in the industry. We are grateful for the continued support of our lenders. and investors, as we work through this refinancing initiative.”
Additional details were included in a Form 8-K filed with the Securities and Exchange Commission.
About Unique Fabricating, Inc.
Unique Fabricating, Inc. (NYSE American: UFAB) designs and manufactures components for customers in the transportation, appliance, medical, and consumer/off-road markets. The Company’s solutions are comprised of multi-material foam, rubber and plastic components and used in noise, vibration and harshness (“NVH”) management, acoustic management, air sealing water and air, decoration and other functional applications. Unique relies on proprietary manufacturing processes including die-cutting, thermoforming, compression molding, fusion molding and reaction injection molding to manufacture a wide range of products including air management products, heating, ventilation and air conditioning (“HVAC”) systems, gaskets, engine covers, fender pads, air ducts, sound insulation, door water seals , gas tank pads, light seals, mattress topper pads, mirror seals, glove box liners, personal protective equipment and packaging. The company is headquartered in Auburn Hills, Michigan. For more information, visit http://www.uniquefab.com.
Safe Harbor Statement
Except for historical information contained in this release, the matters discussed in this press release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. . Forward-looking statements relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry are materially different from those future results, levels of activity, performance or achievements expressed or implied by this press release. Words such as “may”, “will”, “could”, “would”, “should”, “anticipate”, “predict”, “potential”, “continue”, “expect”, “has ‘intent to’, ‘plans’, ‘projects’, ‘believes’, ‘estimates’, ‘outlook’ and similar expressions are used to identify such forward-looking statements. These forward-looking statements include statements regarding, among other things, our expectations regarding the proposed refinancing of the Company’s existing senior secured credit facility. All such forward-looking statements are based on management’s current expectations and are subject to certain factors, risks and uncertainties that may cause actual results to differ. , the outcome of events, the timing and performance will differ materially from those expressed or implied by such statements.These risks and uncertainties include, but are not limited to, those discussed in our Annual Report on Form 10-K for the financial year ended December 31, 2021, filed with the Securities and Exchange Commission and in particular the section entitled “Risk Factors”, including that there is doubt as to the continued operation of the company as well as any updates to these risk factors filed from time to time in our periodic and current reports filed with the Securities and Exchange Commission. All statements in this press release are made as of the date of this press release, and Unique Fabricating does not intend to update this information except as required by law. Reference to the Company’s website above does not constitute incorporation of any of the information contained therein in this press release.
Rob Fink, FNKIR
+1 (646) 809-0408
THE SOURCE: Unique Manufacturing, Inc.
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