NEW ALBANY, Ohio, June 29, 2021 (GLOBE NEWSWIRE) – CVG (NASDAQ: CVGI) (“CVG” or the “Company”) today announced that Moody’s Investors Service (“Moody’s”) has assigned a B2 rating to its new senior secured credit facilities with a stable outlook.
Chris Bohnert, Chief Financial Officer, said: “We are pleased with the new borrowing facility and consistent ratings from Moody’s. The new credit facility entered into in April 2021 provides increased flexibility as we expand into new end markets with the goal of accelerating CVG’s growth while reducing the historical cyclicality of the Company. Our expansion into the warehouse automation and electric vehicle markets opens CVG to secular growth markets and we continue to examine market and product expansion opportunities as we strive to transform our business.
Moody’s rating actions reflect the neutral nature of the leverage of the refinancing of CVG in April 2021 with debt in the same category. The proceeds of CVG’s new bank term loan and a portion of the cash have fully repaid the senior bank credit facility maturing in 2023. CVG’s new capital structure extends debt maturities until 2026 and also improves generating free cash flow by reducing cash interest expense by approximately $ 12 million per year.
Christopher Bohnert, Chief Financial Officer
CVG is a global supplier of components and assemblies in two main end markets: the global vehicle market and the US technology integrator markets. The company supplies components and assemblies to global automakers to build original equipment and supplies aftermarket products to fleet owners. The company also supplies mechanical assemblies to warehouse automation integrators and US military technology integrators. Information on the Company and its products is available on the Internet at www.cvgrp.com.
This press release contains forward-looking statements subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “could”. , “Project”, “continue”, “probable” and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, including the impact short and long term COVID -19 on our business, evolution of the construction rates of class 8 and class 5-7 trucks in North America, performance of the global construction equipment business, outlook for the Company in wire harness, warehouse automation and electric vehicle markets, Company initiatives to meet customer needs, organic growth, Company strategic plans and plans to focus in certain segments, the competition with which the Company is confronted, the volatility and disruption of the global economic environment and the financial situation of the Company or to other s financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its view of historical trends, current conditions, expected future developments and other factors that it deems appropriate in the light of circumstances. Actual results may differ materially from anticipated results due to certain risks and uncertainties, including those included in documents filed by the Company with the SEC. There can be no assurance that the statements made in this press release regarding future events will be realized. The Company assumes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unforeseen events or changes in future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.