POWER SOLUTIONS INTERNATIONAL, INC.PSIX
POWER SOLUTIONS INTERNATIONAL, INC. Debt Disclosure
Debt
The Company’s outstanding debt consisted of the following:
| (in thousands) | As of December 31, 2025 | As of December 31, 2024 | |||||||||||||||||||||
| Amount | Rate (2) | Amount | Rate (2) | Maturity Date | |||||||||||||||||||
| Short-term financing: | |||||||||||||||||||||||
Revolving Credit Agreement 1 | $ | — | —% | $ | 95,000 | 6.52% | |||||||||||||||||
| Shareholder’s Loan Agreement | — | —% | 25,000 | 8.49% | August 31, 2025 | ||||||||||||||||||
| Total short-term debt | $ | — | $ | 120,000 | |||||||||||||||||||
| Long-term debt: | |||||||||||||||||||||||
Revolving Credit Agreement 1 | $ | 95,000 | 6.35% | $ | — | —% | July, 30 2027 | ||||||||||||||||
| Finance leases and other debt | 1,617 | ** | 184 | ** | Various | ||||||||||||||||||
| Total long-term debt and finance leases | 96,617 | 184 | |||||||||||||||||||||
| Less: Current maturities of long-term debt and finance leases | 383 | 130 | |||||||||||||||||||||
| Long-term debt | $ | 96,234 | $ | 54 | |||||||||||||||||||
| 1 | Unamortized financing costs and deferred fees on the amended Revolving Credit Agreement are not presented in the above table as they are classified in Prepaid expenses and other current assets on the Consolidated Balance Sheet. Unamortized debt issuance costs, were $1.0 million and $0.4 million at December 31, 2025 and 2024, respectively. | ||||
| 2 | Includes the weighted average interest rate. | ||||
| ** | Finance lease obligations are a non-cash financing activity. See Note 8. Leases. | ||||
The Company paid $7.8 million and $12.6 million in cash for interest in 2025 and 2024, respectively.
Revolving Credit Agreement and Shareholder’s Loan Agreement
On August 30, 2024, the Company closed on the Revolving Credit Agreement, with Standard Chartered Bank (“Standard Chartered”) and two other lenders. The Revolving Credit Agreement allowed the Company to borrow up to $120.0 million and had a maturity date of August 30, 2025. The Revolving Credit Agreement was subject to customary events of default and covenants, including minimum consolidated EBITDA and Consolidated Interest Coverage Ratio covenants for the third and fourth quarters of 2024 and the first and second quarters of 2025. Borrowings under the Revolving Credit Agreement incurred interest at the applicable Secured Overnight Financing Rate (“SOFR”) plus 2.00% per annum. The obligations under the Revolving Credit Agreement were unconditionally guaranteed, on a joint and several basis, by certain wholly-owned, existing and subsequently acquired or formed direct and indirect subsidiaries of the Company, subject to customary exceptions. The obligations under the Revolving Credit Agreement were secured by substantially all assets of the Company and the Company’s wholly-owned subsidiaries. In addition, the Company paid fees of $0.6 million related to the Revolving Credit Agreement which were deferred and amortized over the term of the Revolving Credit Agreement. As part of the closing of the Revolving Credit Agreement, the Company made an initial draw in the amount of $100.0 million. The Company utilized the amount drawn under the Revolving Credit Agreement (i) to repay the outstanding balance of approximately $40.0 million under the Company’s Fourth Amended and Restated Uncommitted Revolving Credit Agreement, dated March 22, 2024, by and among the Company and Standard Chartered; and (ii) to prepay approximately $60.0 million under previous shareholder loan agreements between PSI and Weichai.
In connection with the Revolving Credit Agreement, on August 30, 2024, the Company also entered into a new SLA with Weichai, which allowed the Company to borrow up to $105.0 million and expired August 31, 2025. Borrowings under the SLA incurred interest at the applicable SOFR, plus 4.05% per annum. If the interest rate for any loan was lower than Weichai’s borrowing cost, the interest rate for such loan would be equal to Weichai’s borrowing cost plus 1.0%. The borrowing requests made under the SLA were subject to Weichai’s discretionary approval. The payment of the borrowings under the SLA was subordinated in all respects to the Revolving Credit Agreement with the exception that the Company was allowed to make a single payment of $10.0 million to Weichai. The $60.0 million portion of the initial advance under the Revolving Credit Agreement was applied to pay all principal, interest, and other amounts outstanding under the Shareholder’s Loan Agreements that the Company was previously party to with Weichai except for $25.0 million. In January 2025, the Company amended the Revolving Credit Agreement. After the amendment date, the Company was able to repay the outstanding balance under the
SLA in principal and interest provided there are no new borrowings under the SLA. In June 2025, the Company made the final payment of outstanding balances and fully repaid the SLA.
On July 30, 2025, the Company closed on the Second Amendment (the “Amendment”) to the Revolving Credit Agreement with Standard Chartered and three other lenders. The Amendment continues to enable the Company to borrow under a revolving line of credit secured by substantially all the Company’s tangible and intangible assets. The Amendment extended the maturity to July 30, 2027, and increased the borrowing capacity of the revolving line of credit to a maximum of $135.0 million. The Amendment is subject to customary events of default and quarterly covenants, including minimum consolidated EBITDA, consolidated interest coverage ratio, and consolidated leverage ratio covenants for each fiscal quarter ending hereafter. Borrowings under the Amendment will incur interest at the applicable Secured Overnight Financing Rate (“SOFR”) plus 2.10%. In the event the Company’s majority shareholder, Weichai, holds less than fifty percent (50%) of the common equity of the Company, the interest rate under the Amendment will increase to the applicable SOFR plus 2.60% per annum. The obligations under the Amendment remain unconditionally guaranteed, on a joint and several basis, by certain wholly-owned, existing and subsequently acquired or formed direct and indirect subsidiaries of the Company, subject to customary exceptions. In addition, the Company paid fees of $1.2 million related to the Amendment which are deferred and amortized over the term of the Amendment. As of December 31, 2025, the Company had $95.0 million outstanding under the amended Revolving Credit Agreement.
As of December 31, 2025, the Company’s total outstanding debt obligations under the Revolving Credit Agreement and for finance leases and other debt were $96.6 million in the aggregate, and its cash and cash equivalents were $41.3 million. The Company's total accrued interest for the Revolving Credit Agreement was $0.3 million and $1.2 million as of December 31, 2025 and 2024, respectively. Accrued interest is included within Other Accrued Liabilities on the Consolidated Balance Sheets.
The below schedule of remaining maturities of long-term debt excludes finance leases (refer to Item 8., Note 8. Leases).
| (in thousands) | ||||||||
| Year Ending December 31, | Maturities of Long-Term Debt | |||||||
| 2026 | 28 | |||||||
| 2027 | 95,010 | |||||||
| Total | $ | 95,038 | ||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Apr 14, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | May 4, 2020 | |
| 2018 | Dec 27, 2019 | |
| 2017 | May 16, 2019 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.