Hyster-Yale secures $300 million revolving credit facility maturing in 2030

Hyster-Yale, Inc. (NYSE:HY), a materials handling equipment manufacturer with a market capitalization of approximately $697 million, announced it has entered into a new $300 million revolving credit facility, according to a statement filed with the Securities and Exchange Commission. The company, which maintains a "GOOD" financial health rating according to InvestingPro analysis, currently trades at an attractive P/E ratio of 7.25x while offering a dividend yield of 3.68%. The agreement was executed on Tuesday by Hyster-Yale and its wholly owned subsidiaries, including Hyster-Yale Materials Handling, Inc., Hyster-Yale Nederland B.V., and Hyster-Yale UK Limited, with Bank of America, N.A. as administrative agent and security trustee, and BOFA Securities, Inc. and Citibank, N.A. as joint lead arrangers and joint book managers.

The facility replaces the company’s previous revolving credit facility, which was scheduled to mature on June 24, 2026. The new agreement includes a domestic revolving credit line of $210 million and a foreign revolving credit line of $90 million, both maturing on June 24, 2030. The facility may be increased to as much as $400 million in minimum increments of $10 million, subject to lender approval.

Obligations under the agreement are generally secured by a first priority lien on the company’s working capital assets, including cash, cash equivalents, accounts receivable, and inventory, as well as a second priority lien on shares of capital stock, fixtures, and intellectual property.

Borrowings will bear interest at a floating rate, which may be based on a U.S. base rate, Term SOFR, or EURIBOR, plus an applicable margin. For the period before June 30, 2025, the margins are set at 0.50% for U.S. base rate loans and 1.50% for Term SOFR, EURIBOR, and foreign base rate loans. Margins will then range from 0.25% to 0.75% for U.S. base rate loans and 1.25% to 1.75% for other loans, depending on total excess availability. An unused commitment fee of 0.25% per annum applies.

The credit agreement includes covenants that limit additional borrowings, investments, and certain payments unless specific financial thresholds are met. It also requires the company to maintain a minimum fixed charge coverage ratio under certain conditions.

This information is based on a press release statement filed with the SEC. According to InvestingPro analysis, Hyster-Yale appears undervalued at current levels, with multiple additional financial metrics and insights available through the platform’s comprehensive Pro Research Report. Investors seeking detailed analysis of companies like Hyster-Yale can access over 1,400 in-depth research reports, featuring intuitive visuals and expert analysis for smarter investment decisions.

In other recent news, Hyster-Yale, Inc. announced its first-quarter 2025 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue. The company reported an EPS of $0.49, which was below the forecasted $1.66, and revenue of $910.4 million, falling short of the expected $989.8 million. Additionally, Hyster-Yale has increased its quarterly dividend from 35 cents to 36 cents per share for both Class A and Class B Common Stock, reflecting its commitment to shareholder value. The dividend is set to be paid on June 13, 2025, to shareholders recorded by May 30, 2025.

Despite these financial challenges, the company is focusing on strategic initiatives such as lithium-ion battery modules and modular hybrid platforms. Furthermore, Hyster-Yale is undertaking a business realignment related to its Nuvera operations, aiming to enhance profitability and streamline its energy solutions program. The company expects full-year 2025 revenues to slightly exceed Q1 annualized levels, although operating profit is projected to be below 2024 levels. Hyster-Yale’s recent performance highlights the company’s efforts to navigate a challenging economic landscape while maintaining a strategic focus on long-term growth and innovation.

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