Power Solutions International, Inc. announced that it amended and restated its $25 million shareholder?s loan agreement with its majority stockholder, Weichai America Corp. dated as of May 20, 2024, to extend the loan maturity date to May 20, 2025. The $25 million loan under the $25 Million Third Amended and Restated Shareholder?s Loan Agreement has been fully drawn as of the date of this release and is subordinated in all respects to the Company?s existing $50 million senior secured revolving credit facility with Standard Chartered Bank (of which $40 million has been borrowed as of May 20, 2024).

Borrowings under the $25 Million Third Amended and Restated Shareholder?s Loan Agreement will incur interest at the applicable Secured Overnight Financing Rate, plus 4.05% per annum. Further, if the applicable term SOFR is negative, the interest rate per annum shall be deemed as 4.05% per annum. If the interest rate for any loan under the $25 Million Third Amended and Restated Shareholder?s Loan Agreement is lower than Weichai?s borrowing cost, the interest rate for such loan shall be equal to Weichai?s borrowing cost plus 1%.

The Company previously entered into two separate loan agreements with Weichai, including the $50 million second amended and restated shareholder?s loan agreement on November 29, 2023, and the $30 million second amended and restated shareholder?s loan agreement on March 22, 2024. As of May 20, 2024, PSI had $50 million of borrowings under the $50 Million Second Amended and Restated Shareholder?s Loan Agreement and $19.8 million of borrowings under the $30 Million Second Amended and Restated Shareholder?s Loan Agreement.