Douglas Dynamics Refinances $375 Million Credit Facility

Also Completed Successful Restart of Operations in May as Planned

MILWAUKEE, June 08, 2020 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE: PLOW), North America's premier manufacturer and upfitter of work truck attachments and equipment, today announced it has refinanced its existing senior secured credit facilities with $375 million of new credit facilities, consisting of a $275 million 6-year Senior Secured Term Loan B Facility due June 2026 and a $100 million 3-year Senior Secured ABL Revolving Credit Facility due June 2023. The proceeds from the borrowings will be used for general corporate purposes, including repaying the entirety of the company’s prior $226 million Term Loan B Facility that was scheduled to mature on December 31 2021.

“In addition to extending our debt maturities, this refinancing transaction provides us with what we believe is the right capital structure, enhances our liquidity, and reinforces our robust financial position,” noted Sarah Lauber, Chief Financial Officer. “The strong interest and commitments we received during the refinancing process meant we were able to finalize with favorable terms, which is particularly important in the current economic environment.”

The new Term Loan B Facility is priced at LIBOR plus 3.75%, subject to a 1.00% LIBOR floor, does not contain a financial maintenance covenant, and includes similar restrictive covenants as the company’s prior Term Loan B Facility. The new Revolving Credit Facility is initially priced at LIBOR plus 2.00%, subject to a 1.00% LIBOR floor, and the applicable margin is subject to periodic adjustment based on a pricing grid ranging from 1.75% to 2.25% depending on the company’s average daily excess availability under the facility.  The new Revolving Credit Facility is subject to a borrowing base and includes similar restrictive covenants as the company’s prior Revolving Credit Facility, including a springing minimum fixed charge coverage ratio covenant which is triggered when the company’s excess availability under the facility is below a specified level.  J.P. Morgan acted as Lead Arranger, Lead Bookrunner and Administrative Agent for both Credit Facilities, while Foley & Lardner LLP acted as legal counsel to the company.