Company: CVGI
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001290900-25-000010
Chunk: 17

Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Item 1
Chunk 17
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 been recorded in Other comprehensive income (loss) and will be recognized over the life of the hedged transactions. Stock Warrants Issued in Connection with Long-Term Debt — In connection with entering into the Term Loan due 2030, the Company issued to affiliates of TCW Management five-year warrants for the purchase of up to an aggregate of 3,934,776 shares of the Company’s common stock, issued in two equal tranches.  The tranches have an exercise price of $1.52 and $2.07  per share, respectively.  Until the fourth anniversary after issuance, the Company has the right to repurchase up to 50% of each tranche of warrants at a price equal to $1.40 or $1.00 per share, respectively, above the applicable exercise price.  Upon a refinancing of the Term Loan, the holders of the warrants can require the Company to repurchase up to 50% of each tranche at a price equal to the stock price of the common stock at the time of repurchase less the exercise price.  The warrants contain anti-dilution adjustments that may result in a change in the number of shares of common stock issuable upon exercise.  The Company also has provided TCW Management with certain information and registration rights, including agreeing to file a registration statement within 45 days to register the resale of the shares underlying the warrants, pursuant to an Investor Rights Agreement.The warrants were valued at $2.6 million using the Binomial Lattice Model and were recorded in Other long-term liabilities on the Condensed Consolidated Balance Sheets. The fair values of our financial instruments  measured on a recurring basis are categorized as follows: June 30, 2025December 31, 2024TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Assets:Foreign exchange contract designated as hedging instruments$2,304 $— $2,304 $— $— $— $— $— Foreign exchange contract not designated as hedging instruments$89 $— $89 $— $— $— $— $— Interest rate swap agreement settled in 2025$— $— $— $— $1,069 $— $1,069 $— Liabilities:Foreign exchange contract designated as hedging instruments$62 $— $62 $— $5