Power Solutions International, Inc. (PSI) has entered into a new Revolving Credit Agreement with a total borrowing capacity of $220 million. The agreement, signed on September 25, 2026, and announced on September 30, 2026, matures on September 25, 2029. The facility replaces the Company’s prior credit agreement with Standard Chartered Bank, which was terminated and repaid in full on the closing date.
The lenders party to the new agreement are HSBC Bank USA, National Association (serving as administrative agent), Australia and New Zealand Banking Group Limited, Bank of China Limited, Chicago Branch, and BNP Paribas. The facility includes a $70 million sublimit for letters of credit. Borrowings under the agreement may be used for working capital, general corporate purposes, and to pay fees and expenses associated with the facility.
Interest on the facility is determined at the Company’s option, calculated as the Term Secured Overnight Financing Rate (SOFR) plus 1.80% per annum, or an alternate base rate plus an applicable margin. The Company also borrowed $35 million on the closing date to repay outstanding obligations under the prior credit agreement and cover related fees. The remainder of the proceeds is available for working capital and general corporate purposes.
The Company’s obligations under the agreement are guaranteed by its subsidiaries, including Bi-Phase Technologies, LLC, Power Great Lakes, Inc., and others. The obligations are secured by a security interest in substantially all of the Company’s and Guarantors’ personal property, including intellectual property. The agreement includes financial covenants requiring the Company to maintain a consolidated interest coverage ratio of not less than 3.00 to 1.00 and a consolidated leverage ratio of not greater than 3.00 to 1.00, tested as of the last day of each fiscal quarter.
PSI’s largest shareholder, Weichai America Corp., currently holds approximately 46% of the Company’s outstanding common stock. The agreement defines a change of control as Weichai or Weichai America beneficially owning 50% or less of the Company’s voting equity interests, provided Weichai America retains the right to appoint a majority of the board and Weichai maintains at least 40% of the equity interests.
