NEW YORK - Marathon Asset Management, L.P., a prominent global credit market asset manager, has successfully finalized a refinancing arrangement for NN, Inc., a global diversified industrial firm known for its high-precision component engineering and manufacturing. This new financial strategy introduces a $128 million term loan facility with a five-year maturity, aimed at bolstering NN’s ongoing transformation plan.
The new term loan is expected to enhance NN’s operational capabilities and growth potential by offering improved leverage and liquidity covenants. Harold Bevis, NN’s President and CEO, expressed satisfaction with the completion of the refinancing program, which he believes will accelerate the company’s value enhancement efforts.
Randy Raisman of Marathon Asset Management highlighted the significance of the partnership with NN, Inc., emphasizing the company’s role as a domestic leader in manufacturing high-precision components for critical sectors such as automotive, power, medical, and industrial markets. He noted that the capital solution provided by Marathon is tailored to support NN’s commitment to delivering high-quality American-made products and fulfilling its transformation objectives.
Louis Hanover, Chief Investment Officer at Marathon, underscored the importance of partnering with top-tier companies like NN, stating that Marathon’s capital solutions are integral to fostering long-term value creation for businesses through various strategic initiatives, including growth capital and acquisition financing.
NN, Inc. operates on a global scale, integrating advanced engineering and materials science to produce precision components for diverse markets. Marathon Asset Management, with over $23 billion in assets under management, offers a broad range of credit market expertise, from direct lending to structured credit.
This refinancing initiative is part of NN’s broader strategic efforts to advance its market position and is based on a press release statement from Marathon Asset Management.
In other recent news, NextNav Inc. reported fourth-quarter revenue that exceeded expectations, reaching $1.9 million, compared to the consensus estimate of $1.31 million. This represents a 58.3% increase from the same quarter last year, driven by higher service revenue from government and commercial contracts. Despite the revenue beat, NextNav faced a net loss of $32.3 million for the quarter, attributed mainly to a $14.9 million loss on the change in fair value of warrants and liability associated with an asset purchase. For the full year 2024, the company’s revenue rose by 46.2% to $5.7 million, with an operating loss that narrowed to $60.1 million from the previous year.
Meanwhile, NN Inc has amended its Term Loan Credit Agreement with Oaktree Fund Administration, LLC, adjusting financial covenants to increase the maximum Consolidated Net Leverage Ratio and reduce the minimum Domestic Liquidity requirement. This amendment, known as Amendment No. 6, reflects NN Inc’s efforts to maintain financial flexibility amidst changing economic conditions. The details of this amendment are available in the company’s 8-K filing with the SEC. These recent developments highlight both companies’ efforts to navigate their financial landscapes and strategic goals.
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