Company: CVGI
Filing Date: 2025-06-30
Form Type: 8-K
Source: 0001628280-25-033528
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Company: Commercial Vehicle Group, Inc.
Filing Date: 2025-06-30
Form: 8-K
Item: Item 1.01
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Item 1.01. Entry into a Material Definitive Agreement.

Term Loan Agreement

On June 27, 2025, Commercial Vehicle Group, Inc. (the “ Company”) entered into a $95 million secured credit facility (the “ Term Loan Facility”) pursuant to a term loan and security agreement (the “ Term Loan Agreement”) with TCW Asset Management Company LLC (“ TCW Management”), as administrative agent, and other lender parties thereto. All obligations of the Company under the Term Loan Agreement are unconditionally guaranteed by the Company and certain of its subsidiaries. The Company and each of its guarantor subsidiaries have granted liens in substantially all of their property to secure their respective obligations under the Term Loan Agreement, guaranties and related documents. The Term Loan Facility matures on June 27, 2030.

The proceeds of the term loans incurred under the Facility will be used, together with cash on hand of the Company, to (a) pay down the existing revolving credit facility of the Company with Bank of America, N. A. as administrative agent (the “ Existing Revolving Loan Agreement”), (b) pay related transaction costs, fees and expenses incurred in connection therewith, and (c) for working capital and other lawful corporate purposes of the Company.

Interest Rates and Fees

Amounts outstanding under the Term Loan Agreement accrue interest at a per annum rate based on the consolidated total leverage ratio ranging from SOFR plus8.75% with a leverage ratio < 3.50x to SOFR plus10.75% with a leverage ratio > 6.25x. The interest rate shall initially be set at SOFR plus9.75%. At the Company’s option, interest may be paid at the base rate. In connection with the initial funding of the term loan the Company shall pay to the term loan lenders a fee equal to 3.0% of the term loan amount.

Covenants and Other Terms

The Term Loan Agreement contains a maximum total leverage ratio covenant, a maximum capital expenditure covenant, an average liquidity covenant, and other customary restrictive covenants, including, without limitation, limitations on the ability of the Company and its subsidiaries to incur additional debt and guarantees; grant certain liens on assets; pay dividends or make certain other distributions; make certain investments or acquisitions; dispose of certain assets; make payments on certain indebtedness; merge, combine with any other person or liquidate; amend organizational documents; file consolidated tax returns with entities other than the Company and its subsidiaries; make material