TPI Composites, Inc. (NASDAQ:TPIC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

On April6, 2018, TPI Composites, Inc. (the “Company”) entered into a Credit Agreement (the “Agreement”), among the Company, JPMorgan Chase Bank, N.A. (“JPMorgan”), as administrative agent, Wells Fargo Bank, National Association and Capital One, National Association (“Capital One”), as co-syndication agents and JPMorgan, Wells Fargo Securities, LLC and Capital One, as joint bookrunners and joint lead arrangers. The Agreement consists of a multi-currency, revolving credit facility in an aggregate principal amount of $150.0million (inclusive of a $25.0million letter of credit subfacility), to which the lenders thereunder have agreed to make revolving loans available to the Company (the “Borrowings”). The Company drew down $75.4million on the revolving credit facility in connection with the closing of the transactions contemplated by the Agreement and used the proceeds from such draw down to terminate and pay all outstanding amounts due and payable under the Company’s senior secured credit facility provided by HPS Investment Partners, LLC as Administrative Agent and Collateral Agent, plus certain fees and expenses incurred by the Company in connection with the Agreement. All Borrowings and amounts outstanding under the Agreement are scheduled to mature on April6, 2023.

The initial Borrowings under the Agreement were designated by the Company as “ABR Borrowings” from April6, 2018 through April9, 2018. Thereafter, the Company designated the Borrowings as “Eurocurrency Borrowings” under the Agreement and will bear interest at a variable rate equal to LIBOR plus an initial margin of 1.5%. This margin may vary based on the Company’s total net leverage ratio (as defined in the Agreement). Interest is payable either quarterly in arrears or, with respect to Borrowings based upon the Adjusted LIBO Rate (as defined in the Agreement), on the last day of the applicable Interest Period (as defined in the Agreement) and, in the case of any Interest Period longer than three months, on each successive date three months after the first day of such Interest Period. The Company is not obligated to make any principal repayments prior to the maturity so long as the Company is not in default under the Agreement. The Company may prepay Borrowings without penalty under the Agreement.

The obligations under the Agreement are secured by a lien on substantially all tangible and intangible property of the Company and the Company’s material domestic subsidiaries and by a pledge by the Company and its material domestic subsidiaries of 65% of the equity of their direct foreign subsidiaries, subject to customary exceptions, limitations and exclusions from collateral.

The Agreement contains customary affirmative covenants, negative covenants and events of default, as defined in the Agreement, including covenants and restrictions that, among other things, require the Company and its subsidiaries to satisfy certain financial covenants, and restricts or limits the ability of the Company and its subsidiaries to incur liens, incur additional indebtedness, enter into joint ventures or partnerships, engage in mergers and acquisitions, engage in asset sales and declare dividends on its capital stock. A failure to comply with these covenants could permit the Lenders under the Agreement to declare the Borrowings, together with accrued interest and fees, to be immediately due and payable, plus any applicable additional amounts relating to a prepayment or termination, as described above.

The foregoing description of the material terms of the Agreement does not purport to be complete and is subject to, and is qualified in its entirety by, reference to the Agreement, which will be filed as an exhibit to the Company’s Quarterly Report on Form10-Q for the three months ended March31, 2018 or as an amendment to this Form8-K.

The information set forth under Item 1.01 of this current report on Form 8-K is incorporated by reference as if fully set forth herein.

The information set forth under Item 1.01 of this current report on Form 8-K is incorporated by reference as if fully set forth herein.

On April 9, 2018, the Company issued a press release announcing that it had entered into the Agreement. A copy of the Company’s press release is furnished herewith as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.

The information in Exhibit 99.1 of this current report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 1.01 of this current report on Form 8-K (including Exhibit 99.1) shall not be incorporated by reference into any registration statement or other document to the Securities Act of 1933, as amended.

(d) Exhibits

99.1 – Press Release dated April9, 2018

TPI COMPOSITES, INC Exhibit
EX-99.1 2 d566459dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 TPI Completes Debt Refinancing with a New $150 million,…
To view the full exhibit click here

About TPI Composites, Inc. (NASDAQ:TPIC)

TPI Composites, Inc. manufactures composite wind blades. The Company operates through four segments. The United States segment includes the manufacturing of wind blades at its Newton, Iowa plant; the manufacturing of precision molding and assembly systems used for the manufacture of wind blades in its Warren, Rhode Island facility, and the manufacturing of composite solutions for the transportation industry, which it also conducts in its Rhode Island and Massachusetts facilities. The Asia segment includes the manufacturing of wind blades in facilities in Taicang Port, China and two in Dafeng, China; the manufacturing of precision molding and assembly systems in its Taicang City, China facility; the manufacturing of components in its second Taicang Port, China facility, and wind blade inspection and repair services. The Mexico segment manufactures wind blades from a facility in Juarez, Mexico. The Middle East and Africa segment manufactures wind blades from a facility in Izmir, Turkey.