NN Announces First Steps in Balance Sheet Optimization Plan
March 08 2024 - 4:30PM
NN, Inc. (NASDAQ: NNBR), a global diversified industrial company
that engineers and manufactures high-precision components and
assemblies, today announced that on March 5, 2024, it entered into
a Purchase and Sale and Escrow Agreement to sell and lease back
three facilities, for an aggregate purchase price of a $16.8
million that is expected to close on or around March 15, 2024 with
no impact to EBITDA. The net proceeds from the transaction will be
used to repay a portion of the outstanding balance under the
company’s term loan, lowering ongoing cash interest expenses. In
addition, the company has reduced its corporate headquarters
footprint by approximately two-thirds through a separate sublease
transaction, lowering ongoing operating costs.
“These actions mark another strong step forward
in the execution of our transformation plan and helps us further
strengthen and strategically de-risk our balance sheet,” said Mike
Felcher, Senior Vice President and Chief Financial Officer of NN,
Inc. “We are taking actions in line with a multi-step 2024 plan to
reduce our cost of capital, and to position ourselves for future
refinancing when market conditions are favorable. Combined with our
continued efforts to drive consistent free cash flow generation
through our operations, this is as an important strategic pillar as
we align our capital resources for a stronger, more focused
long-term growth program.”
NN will continue to operate at these facilities.
There will be no impact to NN employees or customers.
About NN, Inc.NN, Inc., a
global diversified industrial company, combines advanced
engineering and production capabilities with in-depth materials
science expertise to design and manufacture high-precision
components and assemblies for a variety of markets on a global
basis. Headquartered in Charlotte, North Carolina, NN has
facilities in North America, Europe, South America, and Asia. For
more information about the company and its products, please visit
www.nninc.com.
FORWARD-LOOKING
STATEMENTSExcept for specific historical information, many
of the matters discussed in this press release may express or imply
projections of revenues or expenditures, statements of plans and
objectives or future operations or statements of future economic
performance. These statements may discuss goals, intentions and
expectations as to future trends, plans, events, results of
operations or financial condition, or state other information
relating to NN, Inc. (the “Company”) based on current beliefs of
management as well as assumptions made by, and information
currently available to, management. Forward-looking statements
generally will be accompanied by words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “forecast,” “guidance,”
“intend,” “may,” “possible,” “potential,” “predict,” “project” or
other similar words, phrases or expressions. Forward-looking
statements involve a number of risks and uncertainties that are
outside of management’s control and that may cause actual results
to be materially different from such forward-looking statements.
Such factors include, among others, general economic conditions and
economic conditions in the industrial sector; the impacts of
pandemics, epidemics, disease outbreaks and other public health
crises, on our financial condition, business operations and
liquidity; competitive influences; risks that current customers
will commence or increase captive production; risks of capacity
underutilization; quality issues; material changes in the costs and
availability of raw materials; economic, social, political and
geopolitical instability, military conflict, currency fluctuation,
and other risks of doing business outside of the United States;
inflationary pressures and changes in the cost or availability of
materials, supply chain shortages and disruptions, the availability
of labor and labor disruptions along the supply chain; our
dependence on certain major customers, some of whom are not parties
to long-term agreements (and/or are terminable on short notice);
the impact of acquisitions and divestitures, as well as expansion
of end markets and product offerings; our ability to hire or retain
key personnel; the level of our indebtedness; the restrictions
contained in our debt agreements; our ability to obtain financing
at favorable rates, if at all, and to refinance existing debt as it
matures; new laws and governmental regulations; the impact of
climate change on our operations; and cyber liability or potential
liability for breaches of our or our service providers’ information
technology systems or business operations disruptions. The
foregoing factors should not be construed as exhaustive and should
be read in conjunction with the sections entitled “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” included in the Company’s filings made
with the Securities and Exchange Commission. Any forward-looking
statement speaks only as of the date of this press release, and the
Company undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law. New
risks and uncertainties may emerge from time to time, and it is not
possible for the Company to predict their occurrence or how they
will affect the Company. The Company qualifies all forward-looking
statements by these cautionary statements.
Investor & Media
Contacts:Joseph Caminiti, CFA, or Stephen Poe,
InvestorsTim Peters or Emma Brandeis, MediaNNBR@alpha-ir.com+1 312
445 2870
NN (NASDAQ:NNBR)
Historical Stock Chart
From Sep 2024 to Oct 2024
NN (NASDAQ:NNBR)
Historical Stock Chart
From Oct 2023 to Oct 2024