Motorcar Parts of America has entered into an amended and restated $125 million credit facility, comprised of a $95 million term loan and a $30 million revolving credit facility with Cerberus Business Finance LLC as collateral agent and PNC Bank as administrative agent. The amended and restated credit facility replaces a previous $125 million credit facility, comprised of a $105 million term loan and a $20 million revolver.
 
Based on current interest rates, the interest rate for the new term loan is 6.75 percent, consisting of a LIBOR floor of 1.50 percent plus a margin of 5.25 percent. The revolving credit facility interest rate is LIBOR plus a margin of 2.50 percent. This represents a savings of approximately 3.75 percent for the term loan and 0.5 percent on the revolver. At closing, the company had a $95 million term loan outstanding in addition to $10 million of borrowings on the revolving credit facility, with a blended interest rate currently of approximately 6.4 percent. The company had approximately $30 million of cash on hand at closing.
 
"The amended and restated credit facility reduces our blended rates by approximately 4 percent and also gives the company the flexibility to repurchase stock and to pay down an incremental $10 million of the term loan within the next 120 days. The new facility will result in reduced interest expense and provides greater financial flexibility to execute management's strategic growth plans," said Selwyn Joffe, chairman, president and CEO.
 
In conjunction with entering into the amended and restated financing agreement, the company incurred various fees and expenses, including a pre-payment premium stipulated in the original loan agreement of approximately $3 million on the company's prior credit facility.